Why are used car prices plummeting rapidly? How to avoid the pitfalls of buying used.
Why do new cars cost more every year yet their used counterparts are decreasing in value? According to a detailed study conducted by Used Cars Exposed, a five year old used car is worth considerably less now than five years ago for the same age car. In other words, the average new car in Australia in 2000 depreciated by 30% after three years compared with 21% in 1995. At this rate, a 2003 model will lose 36% of its value after three years.
Alarmingly, used car values in the United States have dropped by the same amount although used cars in this country depreciate quicker than in Australia.
The average car in the united Kingdom now loses a staggering 68% of its new purchase price after three years compared with 62% from 1993.
The big question on everyone’s lips right now is: ‘how much will my new car be worth in five years?’ More to the point, how much can the average person afford to lose? As times are slowly getting tougher and inflation is on the rise, many families and average wage earners are turning to used cars. Whether it is the average family buying a second run-about or the student looking for his/her first car, used cars are going to be with us long into the future.
But before you go out and buy the first used car that you see, or even the one that your grandfather’s friend is selling, there are dangers to look out for.
I, James Alphonse, was recently in the market for a used car but did not have a clue what to buy. People with well meaning advice scared me with comments like: ‘what if the car is unreliable?’ or ‘do you know what problems to look for?’ and ‘do you understand how each car operates and handles?’
No, I had no idea. Foolishly I bought an old Gemini from a friend for more than it was really worth and it proved to be the most unreliable bomb I ever owned. Over a period of three years I ended up spending nearly $4,000 just to keep it in working order. What a waste of money!
It was only then that I decided to look for some sort of information book that would give detailed information about every used car such as the average used price per year, reliability and recall report, test drive, what problems to look out for, fuel economy, overall practicality and model history. nothing of its kind existed – up until now. An acquaintance, Mr. A. Milkins has recently started a new web site that provides this very information plus more. Derived from technical service bulletins and extensive research since 2001, Used Cars Exposed was released in late 2003. Speaking to mr. Milkins, this is what he told me:
“Basically, Used Cars Exposed endeavours to provide the average person with all the vital information they need when considering purchasing a used car. For a modest AU$35 price tag, buyers in this market have all the resources for nearly every make and model dating from 1970 to the present day. It takes virtually all the worry and risk out of finding the right car. Armed with this valuable data, one can boldly select a used car and rest assured knowing they may have saved themselves from losing thousands in repairs,”
Does Used Cars Exposed serve only Australia?
“No, special editions are available for the American and British markets as well as Australia. A South African version will also be on offer soon,”
Do you think this is good value for money?
“AU$35 is only US$18 and 14 pounds in England. Considering that the Used Cars Exposed CD-book contains around 200 of pages of valuable information that can save you a small fortune, of coarse it is good value,” Mr. Milkins said.
The advice in the CD was definitely worth its weight in gold as I have been able to avoid a few pitfalls and am now driving a decent used vehicle.
Check out http : // usedcarsexposed . com and save a fortune.