Just because you don’t want to purchase a brand new car, it doesn’t mean that you are compromising when you buy a used car. There are a lot of used cars out there that people would love to have. In fact, I’ve never bought a brand new car myself because 1.) I was not in a suitable financial position to do so and 2.) I know how much brand new cars depreciate as soon as they are driven off the lot.
The median price of a used car, since 2011, is $18,000. That might sound like a lot, but on average it is $10,000 less than the median cost of a brand new vehicle. The premium price that you pay when you drive a brand new car off the lot is astonishing, and three years later, the value of your brand new vehicle will be ½ of what it was when you bought it brand new. Although the value of the car takes a huge hit after 3 years, the technology becomes obsolete so much quicker these days than in the past, and that also become a deterrent to used car buyers.
The last two cars that I’ve owned were both two years old when I bought them and they were just like new. I currently own a 2007 Nissan Altima that I bought in 2010, so it was only a couple of years old, and because I’ve taken great care of my car, it still has the feeling of a new car. Because I was able to negotiate my way into the price I wanted to pay, and ensured my car only had one owner previously, I’m still extremely happy with my car….and to top it off, I no longer have a car payment! When I did buy the car, I put 10% down so I could get a better interest rate. With that and a 5 year loan, my car payment was only $280 per month and the happiness that I got from driving my car every day was priceless.