When it comes to used car prices, make sure to inform yourself to prevent being cheated.
Used Car Prices
A new car will cost you anywhere from $10,000 to $30,000, depending on how big and luxurious the car is.
When a car comes rolling out of the showroom, it immediately loses a big portion of its value. We’re talking 35% to 50% here.
This is why few people will ever sell their used car when it’s still relatively new: they would immediately realize a net loss of thousands of dollars.
However, once a car reaches the age of 5 and over, people are looking around to buy a new one. This is the age where used car prices really start to come down to as little as 15-30% of the price it had when it was still new.
When buying a used car, first find out what the car cost when it was new. The price that is asked for it once it’s an ‘old car’ (5 years or up), should not exceed said 15-30% of the original value.
An old car that’s in bad shape should be on the 15% end of the spectrum. A well maintained car that’s in good shape should be on the 30% end of the spectrum. Preferably a little lower even.
If the owner of the car asks more for it, it is time for you to move on to the next used car on your list.
Also be sure to make comparisons. If you find a car you like, note the price tag. Then, find other used cars of the same brand and with similar ages. Check their price tags as well and use all that information to figure out if the price is right.
Research, common sense and patience will get you a long way when it comes to paying the right price for a used car.
Courtesy of Cheap Old Cars For Sale.