With so many options available to you, you might think that shopping for a car would be easier than ever these days. Finding the right vehicle, making sure your financing is in order, and then trying to get the best price for it is a time-consuming process though. One of the first mistakes to avoid is to decide what market you want to focus on early on. Here are three that offer the best value.
The used market is often seen as the first place to go for those on the lookout for the best deals. For those who aren’t looking for a showpiece vehicle, you can find fully serviceable vehicles that have already suffered through their worst years of depreciation. The average car loses around 15% of its original value each year. In fact, a new car depreciates around 20% the moment it’s driven off the lot. All of this starts to slow down after around five years, though, assuming it’s had typical road usage, so this could be the time to buy if you don’t want to feel the full effects of depreciation later on.
Pre-registered cars are a essentially brand new vehicles that are heavily discounted because they’ve already had a registered owner. This may be by the dealership themselves if they’re short of a specific sales goal and a deadline is fast-approaching. At this point, it may be in their interest to register the car themselves as the cost may be outweighed by the company bonus. This means that you’re effectively getting a car that has never been used for a significantly reduced price. Pre-registered cars are idea for those who the latest feature-set and design, but don’t want to pay showroom prices. Getting the specific car you want will be highly dependent on luck though.
Finally, for those who aren’t interested in actually owning the vehicle outright, leasing is the approach for you. This works much like renting a car, but rather than a short-term deal the typical length of a car lease is between 12 to 48 months. You’ll pay a monthly fee over the course of your agreement and, at the end of your deal, you’ll return the vehicle to the lender. Providers like Car4Leasing regularly run promotions on discounted offers. Where possible, they can even pre-order specific models to cater to demand if you’re looking for something in particular.
Each of these markets has advantages of disadvantages when compared to the others. Consider all of your options before making your decision.