Contrary to what many of our politicians may want to tell us the fact is that the economy and elevated gas prices have had a serious impact on American households. I see it everyday with more people calling me for used cars than new cars and looking at a complete cost of ownership when selecting a model.
Here’s a thought to think about if you’re trying to save a few bucks. Consumer Reports
showed that on a typical new car, depreciation accounted for 46 percent of the owner costs over five years. Everyone knows that depreciation is greatest in the first year, but I’ve been amazed at what I’ve been witnessing in a number of vehicles. The bottom line is that if you’re interested in saving money, and not just getting better fuel economy then consider buying used.
This week I purchased a 2008 Nissan Pathfinder LE with under 7,000 miles at the Dealer Auction and I’m delivering it to my client next week and save him thousands off of the invoice price of the vehicle. The Pathfinder LE has an MSRP of $39,000, so imagine the shock my client had when he discovered that he would save thousands by having me track down a low-mileage used vehicle. Had he purchased that vehicle new he would have lost thousands the very first year. By the way, the Pathfinder is a great vehicle. This is just an example of what’s happening in the marketplace for certain vehicle models.
If you focus on a nearly-new model, even one, two or three years old, you can find a vehicle that offers comparable fuel economy, performance, safety, and reliability as a new car. You can also get the remaining factory warranty coverage included with your purchase.
Another issue that many people don’t think about is the sales tax issue, plus insurance and registration on used cars is less than new vehicles as well. All of this leads to a vehicle that is lower to purchase and drops the total cost of ownership considerably. In addition, buying a used vehicle can put a better-equipped model, like the Pathfinder LE that I mentioned above that he is getting for thousands less than what he would pay for an SE. Buying used can definitely put a larger, better-equipped model within your budget, but if fuel economy is your driving motivation there are some really great vehicles out there, in American, Japanese, Korean and European models.
Maybe I’ll write another article in November showcasing some of the choices you might want to take a look at or contact me if you are interested in having me track something down for you.
Auto Consultant – John Boyd: The Cool Car Guy
John is an auto consultant with his license at a car dealership in Denver, Colorado. He can help you save time and money on any make or model, new or used, lease or purchase – nationwide! Call or email John about your next vehicle! firstname.lastname@example.org or Twitter @coolcarguy