|
Though it may be unfortunate for those that have recently purchased a new vehicle, it is a fact that most automobiles lose up to half of their value within the first three years that they are driven. However, this can be great news to those who are looking for a well-equipped, semi-used vehicle at a bargain price. But, is it considered a good risk to invest in a vehicle that has already lost so much value? The answer depends on the reason for the drop in price. Why Do Good Cars Depreciate? All new autos depreciate the most in their first year driven, of course, but there are different depreciation rates among various vehicles. However, most auto shoppers err in believing that only the best automobiles hold their prices over time. This is not necessarily true. Though a lack of reliability over time may lead to a drop in price, there are many other factors that can influence rapid depreciation. Higher prices from used car dealers, just like any other retail outlet, are influenced by demand. Sometimes a vehicle that was priced high at the start of the model year just never took off. This leaves used car dealers with a surplus that they are willing to sell off at a discounted price. As a matter of fact, lack of popularity is the most prominent reason for the large pricing gaps between some new models and the same vehicle types that are only lightly used. Many used car dealers also blame vehicle redesigns for the vastly contrasting price points between model years. Sometimes a new model looks nothing like the previous year's stock, and it has numerous features and gadgets that the older models lack. This can make the year old version appear dated and passe. Most of the time, the difference is more of a matter of looks and not the overall function of the vehicle. Therefore, if appearances rank below reliability in the buyer's opinion, these outdated models can be great buys. Do These Vehicles Make Good Deals? As stated above, it is important to differentiate the reasons why a year old model is priced significantly lower than its successor. However, once buyers are comfortable with the way pricing works, and they are confident that they have chosen a dependable vehicle, they will still need to weigh additional factors. For example, does the slightly-used vehicle still have low mileage? Some used car dealers knock down the prices of last year's models if those vehicles already racked up numerous miles before being traded in. Also, some older models may have even been in accidents previously. That is why it is important to get a comprehensive vehicle history report prior to making any commitment to buy. Most used car dealers will be able to provide one upon a potential buyer's request. Remember, auto sales are now back to pre-recession levels, so auto sellers are limiting incentives, and it makes more sense than ever to consider purchasing top-ranked vehicles that depreciate quickly. This is especially true because depreciation usually has nothing to do with the overall quality of the vehicle. After all, on the average, most vehicles drop up to 17% in value over one year's time, and this means there will never be a shortage of great deals to be found. To learn more about their options for used car dealers, Enfield, CT residents should visit http://www.artiolidodge.com/used-inventory/index.htm.
Related Articles -
used, car, dealers, enfield, ct,
|
