Should You Buy Last Year’s Model?

Should you buy last year's model when car buying?

When buying high ticket items, you want to make sure you’re getting a good deal. You’ve probably heard the advice that waiting to buy until after the new model is released can save you money, which is generally true, but there are other factors to consider before purchasing. Here are some things to consider when you are searching for a new car or truck.

The Price Is Right

Prices are better on automobiles if you buy at the end of the model year. Car dealers are willing to make less of a profit to clear space for the new inventory. Even if the new model is very similar to the older one, they are easier to sell than the one that has been available all year. You can also take advantage of manufacturer discounts and incentives which are frequently available in the months prior to the release of a new model.

The Drawbacks

When you purchase last year’s model, although the car is brand new to you, it is basically already a year old in the automobile world. This could impact the resell value when you decide to sell or trade it in. If you like to trade in your car every couple of years, you may want to get the newest model so that you will receive the highest possible resell price.

If you buy a car when a new design will be implemented with the new model, your car will instantly look outdated. Carefully consider the differing features, technology, and look of the two models before signing the papers. While these differences are insignificant to some people and not worth paying more for, others may opt to pay a premium in order to have the newest features.

Which is Right for You?

How long you plan to own the car is the primary factor in deciding which year’s model you should buy. If you are buying a car that you will have for many years, the older model is likely your best bet. Not only will you save money at the time of purchase, but the depreciation will have a less profound impact on the resell value years down the road. If you replace your car often, the new year’s model might be a better financial investment. It will have a higher resell value due to the more current technology and design features and although you will spend more money upfront, you will get a higher amount in return when you upgrade in a few years.

Get the Best Deal

Whether you have decided on the model from last year or this year, be prepared before you head to the dealership. Know the market price range for both vehicle models and be prepared to walk away from a dealership that will not accept a price near that. Know what you are willing to pay and have a financing plan before taking the first test drive. Know what your current credit score is and what loan rates are available to you. Being preapproved for an auto loan takes the guesswork out of how much you can really afford to pay both monthly and overall. If you are trading in a car, you should also know what amount you should expect to receive for it.

If you are ready to purchase your next car, or would like more information about how Eastex CU can put you in the driver’s seat, contact us, we’re here to help. We offer low rates on both new and pre-owned vehicles, and we don’t stop there – we also have plenty of resources to assist you with making the best decision when choosing your new vehicle!

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