There are certain purchases in a person’s life that are considered to be milestone purchases. These purchases are more about a person’s self worth, rather than the Materialistic achievement. Buying a car is certainly one such purchase. When we talk about buying a car, people often feel that they have to have a brand new one straight from the dealership to get their money’s worth as well as a commodity that lasts them for long periods of time. However, that isn’t true. As the booming business of used cars in reno and in other places around the world would prove, more and more people are today investing in pre owned cars instead of buying new ones, let us understand why so.
Why are more and more people buying pre owned cars?
Our society is still very divided when it comes to the concept of buying a pre owned car. Many people believe that those who buy a pre owned car aren’t as financially well off and are settling for scraps just for the sake of the necessity. Whereas, a relatively younger generation believes that buying a pre owned car is the most financially wise decision one can make. The main reason behind the same is the concept of depreciation. Did you know that your brand new car loses as much as 12 percent of it’s value as soon as it leaves the dealership?. Youngsters today do not wish to invest in an asset that loses its value over time. Rather people are willing to buy an asset that has already depreciated, aka a pre owned car, use it to fulfill their need and then increase its value by investing a fraction of the amount it would cost to buy a brand new version of the same car.
Due to the growth of internet as well as phenomenon such as inflation and recession, youngsters today have been forced to adapt their finances and their expenditures in a way that they lose as little money as possible and gain as much as they can. Buying a pre owned car is one of the most financially wise decision you can make and many experts around the world agree.