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Let’s face it, that new car smell is intoxicating. But you know what smells even better? Saving a boatload – or carload – of cash.
GOBankingRates spoke with car experts to find out why sometimes, it’s smart to put your money on a used ride.
Below are five times when you should seriously consider buying a used car, with a focus on keeping your wallet happy.
When You’re Not Ready To Flush Thousands Down the Drain
New cars are nice, there’s no doubt about it. No dings, no mystery stains and no worrying about what the previous owner did in the back seat. But here’s the kicker: the second you drive that shiny new car off the lot, it loses value faster than an ice cream cone on a hot summer day.
“Day one, it will lose thousands of dollars,” said Chris Pyle, a JustAnswer Auto Expert. “When buying a used car, you are wiping out that value loss to some degree.”
Think about it. Would you buy a brand-new iPhone, use it for a day, then sell it as “slightly used” for the same price? Of course not. Cars work the same way, but with way more zeros involved.
When Someone Needs Cash, Like, Yesterday
We’ve all been there — life throws you a curveball and suddenly, you need money fast. Well, one person’s emergency can be another’s opportunity.
Evaldas Zabitis, an automotive expert at carVertical, suggested looking for keywords like “need money,” “fast” or “quick” in online marketplaces.
“People who sell their cars for quick money can offer great deals,” Zabitis said. “They typically need money for a trip, house repairs or other unexpected expenses.”
Just remember, no matter how good the deal looks, always get that car checked out by a pro. A cheap lemon is still a lemon, and it’ll leave a sour taste in your mouth (and your bank account).
When Demand Takes a Nosedive
Ever notice how gym memberships skyrocket in January and then… not so much by February? Car demand works similarly, but on a bigger scale. Zabitis pointed out that certain types of cars become less popular depending on the season.
“Convertibles tend to rise in value before summer, while off-road trucks are in the highest demand after the first snow of the season,” he explained. “In short, buy a car when others don’t need it.”
Thanks!
So, if you’re eyeing that sweet convertible, maybe wait until the leaves start falling to make your move. Your wallet will thank you.
When Salespeople Are Sweating Their Quotas
Remember in school when you’d cram all your studying in the night before the big test? Car salespeople have their own version of this, but instead of grades, they’re after a big commission.
“Salespeople in dealerships have goals to meet at the end of each month, quarter and year,” Zabitis said. “They typically want to close as many deals as possible before a specific period ends to receive a bigger bonus.”
This desperation can lead to bigger discounts and better negotiating opportunities. “Their most important goal is at the end of the year, making December the best month to buy a used car from a dealership, especially before the holidays,” he added.
While everyone else is fighting over the last hot toy of the season, you could be driving home in a bargain set of wheels.
When New Models Make Your Target Car ‘So Last Season’
You know how your phone suddenly feels ancient the day after the new model drops? Cars are no different. Every time a new model rolls out, the older ones take a hit in value.
“To avoid huge losses, car dealerships often offer great discounts weeks before a new model hits the market,” said Zabitis. “However, if these discounts don’t satisfy you, the prices may be even lower after the new model’s release.”
It’s like waiting for that designer outfit to hit the clearance rack. Patience pays off.
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