What’s The Right Age Of An Used Car

Buying a used car in Auckland instead of a new one has obvious advantages. One of the most important differences is the lower price point of used cars.

Cars are assets that undergo depreciation. Buying a used car online is a boon for many. And for those who love riding the latest models, depreciation is the biggest headache. Buying a used car that is just a year or two old can mean a significant saving. The moment a car leaves the showroom after purchase, its value starts depreciating. Therefore, buying used vehicles is far better and cheaper than purchasing brand new. Not to forget, used vehicles also demand maintenance and repair. The wear and tear of the used vehicles can cost you a lot more than you can imagine. Hence, buying a good quality used vehicle online is something that you must consider.

Now the question arises, how old should a used car be before purchase?

Depreciation is inversely proportional to the age of the car.

Before we understand how a car depreciates, please note depreciation value is not same for a new and old car. A brand new car has higher depreciation than an old car. And a new car depreciates faster than used cars. The moment you drive a new car for the first time after purchase, it loses around 10% of its value immediately. Within a year, the average depreciation value of a new car is around 20% of its value. There will be a point where a car will start losing about 15-25% of its current value after every year for the next five years. When the car becomes more than five years old, the depreciation still happens but at a slower rate. This means go buy used cars online that are somewhere between three to six years old.

The sweet spot for used cars.

Used cars online should always be purchased by considering their age because here age is not just a number. It is rather the main criteria that would define the condition and quality of the car. Always go for cars that are two or three years old. That way you are almost buying a new car at a fair price.

For example if a brand new car costs you $25,000 then a two year old car would cost you around $15,000-$18,000. And if you purchase an older car then you can save more because till that time the car would have lost around 50% of its value. So your $25,000 car will cost you around $10,000 after four or five years.

Factors affecting depreciation of a car.

Car models depreciate at different speeds. Like luxury sports vehicles have high rate of depreciation whereas sedan class or hatchbacks have comparatively low rate of depreciation. In sports cars, buyers mostly prefer the latest models which is why their depreciation rate is high but the cars that are considered reliable have a slow rate of depreciation. When you shop used cars online, you get to choose between different models as per your preference in San Jose. Keeping in mind the depreciation rate of the car, make sure you buy the right vehicle.

Considering maintenance costs.

Modern cars are extremely reliable even after they age. But if we talk about ten year old cars, they can not be trusted for long run without a proper service beforehand. The average car maintenance and repair costs for five year olds is extremely low than that of ten year old cars. So as you look for used cars online in San Jose, do not settle on more than five years old models.

The age of the used cars by owners are highly subjective to the quality of the cars. Purchasing a car that is two or three years old is the best decision and will lead to massive savings. Hence as you look for used vehicles near me, do not go for older models.