Why is an older car (even 2-3 years old) so much cheaper than a new one?

Question

Well I know it is logical to be cheaper but sometimes the difference between the price of the new car and the one of the older car is extremly big.

Answer 1

Vanity

Lots of mugs out there prepared to pay through the nose for the latest model, it's not confined to cars !

My 15 year old Mercedes still get me to where I want to go, it cost me peanuts and will probably outlive me.

Nuff said

Ian M

Answer 2

well all the answers above state the reasons if you are at the dealership and you see a new car and right next to it you see a used car that is only $2000 less why would you buy the used one. your likely to spend that for new brakes and tires very shortly. so you have to make it worth buy the used car over the brand new one. the day you drive a new car off the lot it depreciates as much as 20% ddepending on the car. even if you go to a dealer and see a car with only 6K miles on it and it is 2K less wont you wonder why it was traded back in so quickly is the $2K worth the risk to find out. probably not.

financially there are 2 ways that are great to buy cars the first is to buy a newer car that is off lease or trade in that is about 3 years old with a certified warranty that gives you a warranty that is usually as good or better than the original warranty and a car that has allot of life in it. or buy a very old car that has been meticulously maintained and was a quality car to begin with like the previous guys MB once most if not all the depreciation has accrued and then maintain it well.

Answer 3

generally speaking, a car has a life of 7 years and 100,000 (I know some cars are still worth decent money at that age and mileage) miles using that formula a 3 1/2 year old car would be worth 50% of a new car. But your biggest depreciation comes in during your first 3 years. Also the condition and mileage will play a big part in the price. The rule of thumb there again is $1000.00 less for every 10,000 miles the car has on it compared to an identical vehicle. You can check some numbers on the kelly blue book site

Answer 4

Cars often lose up to 33% of their value within the first two years of purchase. Part of that is due to the normal wear and tear people put on the vehicles. But you also have to consider perceived value. People associate quality with new cars to a certain degree whereas a used car often raises concerns.

Answer 5

It's called depreciation. A new car loses up to 20% of its value as soon as it's sold and the buyer takes possession. So let's say you took out a loan of $25,000 to buy your new car, as soon as you drive it off the lot, you couldn't sell it for what you paid for it. You now owe $25,000 on a car with an actual value of $20,000. You are now $5000.00 "upside down" in your loan. Upside down means negative equity, the amount owed exceeds the value. Unless you have the means to put down a substantial down payment, to offset the negative equity, it doesn't make sense for most people to buy a new vehicle. There are plenty of 1-2 year old, good used vehicles out there that will save you a ton of money in the long run.

Answer 6

my 3 12 months old sister is approximately 31 lbs. and he or she merely moved into some style of toddler booster from Sears. i think of it particularly is the "cosco" style. it has a lower back, because of the fact a baby should be 40-50 pounds before he can take a seat interior the backless booster. it has a 5 factor harness because of the fact 3 12 months olds are no longer sufficiently old for a nicely-known seat belt. sturdy success looking a vehicle seat! it does not might desire to be too severe priced

Answer 7

Because of the wear and tear on the car more so the manner
of usage during the period of use

Answer 8

as soon as the car is driven out of the parking lot it depreciates.There are more miles on it than a nre car and there are dent and dings.If you want to know the real value of a car go to kellybluebook.com

Answer 9

Depreciation, mileage, wear and tear, change of model by manufacturer all contribute!

Answer 10

once you drive it out of parking lot it loses like 10,000 if its was even worth that when you bought it