Aug
31
Jason Cromwell
Let’s say you’ve got your mind set on a used car that looks good to you.
Now how do you determine what the right price is for this car?
Before you reach for your wallet, make sure you learn how to put a good price on a used car. Don’t let it be completely in the hands of the owner. He’s the one selling it and he wants to get as much as possible for it!
If you consider that a new car will cost between $10,000 and $30,000, you can imagine that an old, used car must be lots and lots cheaper than that.
As soon as a new car is driven outside, it immediately loses about half of its value. If the new owner of the car were to sell it a few days later, he would realize a 50% loss of the amount he payed for the car when it was new.
This is one of the reasons why people will hang on to their new cars for at least a few years.
Once the car is a few years old, most people will have saved up some money and they will be ready to move on to a new car.
This is the point where the car’s price comes down to about one third of its value when it was still a new car.
So when buying a used car, first figure out what the price of the car was when it was still in the showroom. Then, assuming the car is at least five years old, the price that the owners asks for it should not exceed 30% of what was paid for it originally.
When cars are around ten years old, it is realistic to expect that it costs about 15% to 20% of its original value.
Any car considerably older than ten years has more than likely seen enough wear and tear that it really is not worth much more than $1500 to $2000 at the very most.
Any car whose age is approaching two decades should not even be considered as a valid option.
When it comes to the age of a car, the sweet spot is five to ten years. If you stick to that guideline, you’re more likely to buy a car that’s in decent shape for a decent price.
You’ll have good price/value that way!
Let’s say you’ve got your mind set on a used car that looks good to you.
Now how do you determine what the right price is for this car?
Before you reach for your wallet, make sure you learn how to put a good price on a used car. Don’t let it be completely in the hands of the owner. He’s the one selling it and he wants to get as much as possible for it!
If you consider that a new car will cost between $10,000 and $30,000, you can imagine that an old, used car must be lots and lots cheaper than that.
As soon as a new car is driven outside, it immediately loses about half of its value. If the new owner of the car were to sell it a few days later, he would realize a 50% loss of the amount he payed for the car when it was new.
This is one of the reasons why people will hang on to their new cars for at least a few years.
Once the car is a few years old, most people will have saved up some money and they will be ready to move on to a new car.
This is the point where the car’s price comes down to about one third of its value when it was still a new car.
So when buying a used car, first figure out what the price of the car was when it was still in the showroom. Then, assuming the car is at least five years old, the price that the owners asks for it should not exceed 30% of what was paid for it originally.
When cars are around ten years old, it is realistic to expect that it costs about 15% to 20% of its original value.
Any car considerably older than ten years has more than likely seen enough wear and tear that it really is not worth much more than $1500 to $2000 at the very most.
Any car whose age is approaching two decades should not even be considered as a valid option.
When it comes to the age of a car, the sweet spot is five to ten years. If you stick to that guideline, you’re more likely to buy a car that’s in decent shape for a decent price.
You’ll have good price/value that way!
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