When you are out to buy a new car, you might be overwhelmed by several offers, clearance sales, year-end sales and so on. It doesn’t hurt to be aware that these are marketing strategies deployed by manufacturers to clear existing stock of their vehicles before they introduce newer models. For car buyers its suddenly feels like bargain heaven and they start drooling on slightly upgraded models of their original choices even before considering the final cost implications and other hidden costs that could set you back considerably. It doesn’t hurt to know that sometimes, buying a current model or older model car which is under offer can in the long run cost you much more than buying once that’s newer. Let’s analyze some of the factors that affect such decisions.
Resale Value due to Depreciation
So, then who buys older model cars? If you search for “luxury car dealer near me” you might find dealer experts who would suggest that buying an older model vehicle is beneficial only if you plan to buy this for keeps or many years of use. If you are the one who keeps changing vehicles frequently then buying older models is not for you. One reason for this is the depreciation value on an earlier model would be quite higher than on one that a later release. Most of such cars on offer in the market could be six months to a year old. This way, if for some reason you would be needing to get rid of your vehicle say after a year, the actual age of your vehicle would be considered 2 years and the depreciation (usually 20% per year) will be calculated as per this. This would imply a huge lost value running into thousands irrespective of the sweet deal you got on that car you bought from that clearance or year-end sale.
Having to remain satisfied with leftovers
If you are the one to be easily satisfied even with having leftovers, there is no issue at all, but if you are keen on getting the best, buying a leftover model is again not for you. In case of the models on offer the usual case is that production on these vehicles is probably already halted to make way for the latest and newer models to hit the market. You are now presented a limited choice of trims, colors and features to opt from. As revealed by the luxury car dealership experts, usually the most trendy and popular stuff gets picked off the shelf early on so what you probably are being offered is a leftover which the seller wants to get his hands off asap.
When you go in for a newer model, you probably are getting a sweeter deal because the manufactures are aware that too much of a price difference from predecessor of a particular line could shock their prospective customers and they could look elsewhere. They thus tend to provide the new vehicles with more upgraded features and better fuel economy at more or less the same price brackets. Of course, if something catches your fancy or you have been dreaming of owning a particular type of vehicle, then going in for the leftover still might be your game.