Many individuals that I talk to appear to have a poor opinion of used car dealerships. Envisioning lots filled with derelict vehicles that are coated in rust, holes, or other damages. Cars that have well over 100,000 miles and three owners. They imagine the auto body work costs associated with a used car, and decide instead that they’d rather get a new one from a new car dealer to avoid the hassle.
This idea is understandable from a certain point of view. Cars have become a symbol of status in America, and owning a nice, new, car is something to work towards. Celebrities don’t drive used cars; they drive luxury cars that cost millions. They’re all over the media, in all our movies. Attractive people driving attractive cars. According to TV shows and movies, used cars are old, rusty, and break down. And most of all, used car dealerships are for teenagers getting their first car, or young adults that can’t quite afford more. Right?
Well, not exactly. In fact, the average age of a car in America is now just over 11 years old. That means that all the cars you see in a used car lot are pretty much the same as the ones you’d see on the highway or grocery store parking lot. That also means that those cars are long lasting and cost effective, and may not need all the work people think they do. If they did, why would so many people drive them?
Plus, here’s a secret: those luxury European sports cars actually do break down a lot — and they cost way more to repair when they do.
New, luxury, cars may be a symbol of status in America, but Americans know how to hunt out deals. Luxury cars are expensive, used cars aren’t. That’s why people buy them and rely on them. Even better, because of high inventory, used cars for sale are actually getting cheaper in 2017. The National Automobile Dealers Association estimates that there was nearly a 7% decline in the average used-car price from 2014 to 2016. It dropped from $16,025 to $15,000, and that’s a fair amount of money — Especially when you consider that most lenders require between 10% and 20% down for a car loan! That’s a lot of money saved on the front-side!
Americans are smart consumers. They know how to spot a deal. Luxury cars are nice to look at, but they sure do hurt the wallet. Next time you go shopping for a shiny new car, don’t be afraid to take a look at all your options, even used car dealers.
You’ll be in good company!