You likely know that Indianapolis pre owned vehicles will save you money right out the gate. You will pay less for pre owned vehicles but have you thought about the long term savings that a pre owned vehicle can deliver?
A lot of people do not realize that the upfront savings is not all they are saving when they buy a pre owned vehicle from a reputable buy here pay here dealer. Stepping back and taking a look at the real cost of buying new will have you running to buy that pre owned car you have your eye on.
A New Vehicle May Be One of the Worst Investments
On average the minute you drive your new car off the lot you are losing about $3000. A new car will depreciate in value as follows:
- The first year a new car is on the road it will depreciate by 20%. If you paid $30,000 for a new car, after the first year it is worth around $24,000.
- Each year after the depreciation is around 15%-18%.
- By year 5 a new car has depreciated by about a whopping 60%.
After 5 years your $30,000 car will be worth around $13,000, which means that you just lost $17,000. That is a tremendous loss. Whether you go to sell or trade-in your vehicle you will never get that money back.
A Pre Owned Vehicle Makes More Sense
Now, let’s take a look at how buying a preowned vehicle will pan out. Remember, that 60% loss a new car owner had to deal with at that five year mark? Guess who can benefit from that loss? The next person that buys a pre owned vehicle.
Low cost cars are a great way to take advantage of the depreciation on new cars. You get to save on the purchase price and then do not have to deal with the buyer’s remorse down the road when that expensive new car loses more than half the price you paid for it.
A lot of people are learning that driving a new car is simply not worth the cost. The average age of cars on the road right now is about 11 years. More people than ever are taking advantage of the value that pre owned cars have to deliver.
Buy Here Pay Here Makes The Deal Sweeter
Savings is great, not losing more money over time is great, but worrying about getting the credit that you need is not so great. Shopping at a buy here pay here dealership can help you to get the credit that you need without the hassle.
Make the smarter purchase and shop at the trusted buy here pay here Indianapolis dealership for your next pre owned vehicle.
