For some reason, the idea of driving a shiny new car with the plastic covers on the seats still on drives a lot of people crazy with excitement. You would love to show your new auto toy off to your friends, probably take your beloved on the first drive and feel proud when people ask you about your new car. You probably won’t be taking the seat covers off for weeks! However, once the ‘high’ of having bought a new car is gone, the reality of depreciation falls like a rock on your toe. You realize that, as soon as you drove the car out of the showroom, it suddenly lost a huge chuck of its value. Even if you try to sell the car off within a few months, you will lose a whole lot of money just because your car is ‘used’.

You could, however, be on the other side of the spectrum. You could be the one buying a shiny, barely used car whose seat covers have just been removed! People under-estimate the value they stand to gain by buying a used car instead of a new one. To begin with, a new car loses nearly 70% of its worth within the first four years. Most people try to dispose of their cars within 3 years of use just to get a slightly better re-sale rate. This is the reason why used car dealer lots are brimming with good as new cars waiting to be bought off for less than half their original price! We bet that doesn’t feel to good for the new car owner who just sold his expensive ride but it means that you could get a good deal on a great car!

However, you should try to contact individual owners instead of picking a used car from a dealer. They have lot of cars to sell and can afford to wait for the right price. Individual sellers are in a hurry to get rid of their old cars so you can strike a great bargain for a 3 to 4 year old car!