We all want the most for our dollars when it comes to motoring and when you move into the used car market, it can be costly if you don’t know what you’re doing. It’s all about depreciation, something that impacts a car the day it is driven off the dealership forecourt; it might shock you to learn that up to 35% of a new car’s value vanishes overnight, with a minimum of 15% regardless of make and model.
Minimum depreciation
If you understand used car sales, you will know that 2–3-year-old vehicles hardly depreciate; if looked after, you can buy a 2-year-old motor, keep it for a year and sell it on for what you paid. Smart drivers follow this principle; you can go to the auctions and choose a prestige director’s car that has just turned 2 years old, with minimum mileage and pay trade prices. After 12-18 months, detail the car and ask your investment and you should find a buyer. Repeat the process and you always have a prestige set of wheels at your disposal, which isn’t costing as much.
Short term solutions
There are so many makes and models out there, why not change every 6 months? Astute buying should lead to low-cost motoring and you’ll get to drive some amazing cars! Change your car with the seasons and make the most of the many great makes and models.
Leasing
This is another way to drive a nice car; corporations lease all their vehicles, while you too can lease a BMW or Mercedes and not have to worry about servicing and maintenance. There are some attractive leasing packages, although this doesn’t appeal to everyone.
Cradle to grave
The other affordable way to drive a reliable car is to buy new and keep the car until it can’t be driven anymore. If you managed 10 years, most people would upgrade, but if you develop an attachment, why not keep her in good order? Many Australians prefer to acquire their car in new condition and keep it as long as is practically possible, developing a relationship with their ride, while others see it as a form of transport and an asset.