How to Save Thousands of Dollars on Your Next Car Purchase

The time has come for you to buy a new car, whether it’s a need, or times are good and you want a new ride to show all the hard work. In this article I will explain how to get the most bang for your buck, how to save you thousands of dollars, literally. Unless you’re balling and can afford the loss of depreciation, here are some tips to get you in the right car and minimize your loss.

DO NOT BUY BRAND NEW.

I repeat, do NOT BUY BRAND NEW. Yes, its exciting to get that brand new smelling car, that nobody has ever touched, its so shiny and nice and perfect. Cars lose the most value the first 2 years. Depending on the brand, they range from 25-35% loss of value, sometimes more on some brands. That rate slows down a bit up until the 5-year range; I advise my clients to stick to cars 3-5 years old if they really want a newer car. Different brands and certain cars hold their value better than the averages, as well as some depreciate much faster.

An example is we bought a 3 year old Toyota 4Runner that had an MSRP of just under $42,000. Now with Toyota’s you aren’t going to be able to bargain too much especially 4Runners, so with this example with taxes you’re looking at about $46,000 out the door (including taxes and dealer fees). Our price when we bought it, it was 3 years old and has 26,000 miles on it, still in very good condition for a sale price of $28,500. With taxes it was about $31,000. That is a $15,000 savings!!!

Now it doesn’t work out like this every time, we landed a good deal on it but even if we paid “market value” which was about $30-$31,000, taxes adding up to about $34,000 that’s still a $10,000+ savings!! For a Toyota (that are known to last 300k miles) and only 26,000 miles on it, that thing was barely broken in.

Another example, we were looking at a 2014 Aston Martin Vanquish, sticker on it was $300,000. It is 4-year-old car, it has 15,000 miles on it and it had lost about 60% of its value. This car is a little more extreme from the 4Runner example, but this goes to show how some cars/brands hold their value better than others. We encourage brands that hold their value.

Remember this is for the person that is looking to get the most bang for their buck when buying a car! This is not for the person who is okay losing money, wants the shiny brand new car no matter what is said to them about used car. We get it, it’s not for everyone, but, if you’re looking to save some serious money, learning about the car game is one of them!! Think about it, you’re always going to need a car and probably going to buy a hand full in your lifetime.

It is tough for the average person, that isn’t in the industry to know the ins and the outs. Obviously, it’s more dramatic the more expensive the car is. We always tell people to hire a trusted professional. A relative, a friend, a friend of a friend; it’s always good to know someone in the auto industry, just like its always good to know a lawyer, someone in law enforcement and someone in the medical field. Yes you can do basic research yourself, but it’s always good to consult with a trusted professional first, then decide on your own from there what you want to do.

To take it a step even further, buy private party. If you buy private party always check the vin number, and we recommend a pre purchase inspection with costs $100-$300 depending the dealership

To conclude, don’t buy a brand new car. Look for a 3-5 year old car and capitalize on saving some money! Even a 1-2 year old car will save you money from buying brand new. Don’t get so attached to “oh it’s never been used, its mine and only mine.”

If you have any questions you can contact us via email: info@theautoconvenience.com.

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