According to the National Automobile Dealers Association (NADA), an average American owns at least 13 cars in his or her lifetime, and each of these vehicles can cost them $30,000 each according to their statistics, the reason why they can own 13 cars in their lifetime is they use it for just a couple of years and trade it in for a brand-new one.
This is why brand-new cars which are just two-three years old end up at second-hand car dealerships which are sold at a very cheap price for people who cannot afford to buy a brand-new car. If you come to think of it, you can actually save a whopping $130,000 in your lifetime.
You can find all sorts of cars from compact sedan to luxury sports cars at used cars for sale dealerships in your area, and all of these units only suffer depreciation, and most likely these units have good-running conditions.
When it comes to depreciation, you might have heard that regardless of the car’s model, brand, and its type, it will likely lose 20 percent of its total value once it is driven out from the dealership, and if you come to think of it, you already lost $6,000 from a $30,000 car as you joyfully took your first drive of it. After one year, your car’s depreciation rate climbs to 30 percent which is already $9,000, and for sure you will just ignore this fact, but the truth is, this effect will be felt later when you decide to trade in your car.
A brand-new car depreciation will cut the total cost of $30,000 to $15,000 after three years, while the used car depreciation after three years you can buy it for only $15,000, and you can resell it for $10,000 with a depreciation cost of $5,000. Yes, driving a brand-new car is much better than driving a used car, but, if you think of it that you are actually driving that brand-new car that will soon cost you $10,000.
Many people are tempted about the fact that brand-new cars are far better than used cars. This stigma has been around for many years already. A lot of car owners dispose of their used cars because of a stupid reason that they just want to get rid of it and say that it was just their way to buy someone else’s problems if they are asked if they want to buy a used car. Well, that is not true because the technology that we enjoy today are also applied to the cars that are manufactured today, meaning, these cars are far more durable, efficient, and has a long lifespan compared to cars two to three decades ago.
If you are very eager to purchase a brand new car over a used car, then you should take advantage of its full value by driving it for its entire lifespan, besides, the cars that you ride or drive today are far more technologically advanced to what cars were before according to our Source.