3/12/2012 4:11:50 PM - by Tim Haberforce
Throughout my various introductory economic classes, teachers and professors have always brought in the example of buying a new versus used car. It’s one of the few lessons that jump out at me. I remember that the minute a new car is driven off of the dealer’s lot, it loses 20% of its value.
For a brand new BMW that costs, say, $50,000 on the conservative side, the customer might as well throw $10,000 out the window on his way home. You will probably see me waiting outside these new car dealerships, ready to catch that cash flying out his windows.
Before shopping for a used car, the potential customer needs to create a budget. Even though it is a used car, that doesn’t mean it is going to be a clunker. There are a lot of well-kept, well-running luxury vehicles for a bargain.
For example, Keffer Select has a special on a pre-owned BMW, Charlotte and Huntersville area, with only one previous owner and the CARFAX to back it up. Personally, I have a hard time justifying the purchase of a new luxury car for the equivalent price of a down payment on a house. But would I consider a well-maintained BMW that won’t force me to eat ramen noodles for the rest of the year? I am instantly interested.
We all like nice things, we like to look good, and we like to have reliable cars because no one looks good with an unhappy face stuck on the side of the road. More importantly, we all like to stay within our budget. A gently used luxury vehicle can fulfill all of these criterions.