Investingin a pre-owned car has obvious pros as compared to getting a new one, such as saving thousands of dollars. Of course, according to the leading Winnipeg car dealerships, how much money you can actually save depends on a wide range of factors, such as brand, age, or service needs. But when it comes to the age of the pre-owned car you purchase, is there a “sweet spot”? Let us check it outin detail here.
Beating the depreciation race
Depreciation rates are dissimilar from new and pre-owned cars. The good news is, used cars are on the positive side of the curve. New cars are infamousfor how rapidly they depreciate, with a new car losing up to twenty percent of its value within the 1st twelve months. After this, a car loses almost 15% -25% of its value every year for 5 years, with that rate tapering down over time.
What is the “Sweet Spot” for the age of a pre-owned car?
In retaining “like new” quality and inheriting a slower depreciation rate, the best age for purchasing apre-owned car is two to three years. In fact, the majority of people are saving up to several thousand dollars on a three-year-old car.
For instance, a car thatmayhave cost you $30,000 when new would cost around $16,000 after only three years.
A wonderful approach to come across cars like this is by exploring used car dealerships in Winnipeg, or you can even mull over checking out some certified pre-owned programs. The majority of auto manufacturers have CPO programs where age, mileage, and other quality standards are necessitated for certification. Such programs generally come with extended warranties and other perks, so that you are not just saving money but you are even getting a lot of advantages that you would get with the purchaseof a new car.
What has an effect on depreciation?
Age is not the sole thing that has an effect on depreciation. Luxury cars have high depreciation rates for the reason that buyers in this market are more likely to always want the latest model. Cars that are popular for their reliability depreciate the slowest. Brands such as Mazda, Toyota, and Honda are some of the most reliable on the market, so you could see major savings when you purchase pre-ownedcars of these makes.
Cars that experienced poor reliability or recalls will depreciate the quickest. With more repairs required in the fullness of time, such sorts of pre-owned cars may offset or surpass any initial savings when bought. This is the key reason to carefully research the models you are interested in so that you aremakingthe most promising choice that will save you money over the life of your vehicle.
It takes research, careful calculations, and determination to get the best quality used car for the least money. But taking into consideration that sweet spot of two to three years and exploring Winnipeg car dealerships for used vehicles makes this process much easier!