They say that the moment you drive a vehicle off of the car lot, the value of the vehicle drops by 20%. While this isn’t quite accurate, it is very true that a car’s value can drop significantly between the time you purchase it and the time you’re bringing it in to trade for a new vehicle. If you know a few tricks of the trade, however, you’ll be able to hit that elusive used car sweet spot, which helps you get the most for your trade-in and the best deal for your new vehicle.
When we’re talking about car depreciation, it’s important to note that the first year is the toughest on a vehicle. During this year, Edmunds.com estimates that the vehicle’s value drops almost 22%. The next few years however, years two through four, the car depreciation value is only about 12% annually. When you add this all up and do the math it’s pretty smart to estimate that your vehicle will lose about half of it’s value by the end of the fourth year you’ve owned it.
What does that mean for you when you’re trying to find the used car sweet spot? It means that you should definitely think about trading your vehicle in before the end of the fourth year of ownership. If you trade it in at the end of the third year, you’ll likely get the best value for the vehicle and you’ll also get the most use out of it.
Now, when it comes to buying a used car one of the best tips is to look at returned leases. Buyers who opt for a lease instead of an outright purchase will find that they’re going to get the most bang for their buck. This is because lease owners have to keep their mileage at a certain amount each year and, in general, lease vehicles tend to be better taken care of. Trade at the right time, buy at the right time and you’ll definitely find the used car sweet spot.
Another way to find that sweet spot? Visit the friendly professionals at Palm Beach Auto Sales Outlet. We’re here to help you find your next new-to-you vehicle.
