Does Buying a Leftover Model Make Sense?
Most people think this is the best time to buy a new car, but most haven't considered the full costs and consequences of buying these leftover models. Buying a leftover model isn't for everyone, and doing so may actually cost you more then if you had bought the newer model.
First of all, you should only consider buying a leftover model if you intend to own it for many years. This is because the depreciation on a leftover model is going to be significantly higher than the newer model. When you buy a leftover, it's essentially a one year old car.
If you're forced to sell it after a year, your car will be considered 2 years old and will have depreciated accordingly. This will cost you thousands of dollars in lost value and if you didn't get an awesome deal on that car, you will end up in a worse situation than if you had bought the newer model.
Another thing you need to consider when buying a leftover model are the disadvantages of waiting too long. Production stops a couple of months before the newer models hit the showrooms, so you're only left with limited colors, styles and options to choose from. The most popular combinations get sold first, so you really need to be active when shopping for a leftover model.
Finally, you should be aware of the pricing for the newer model. Sometimes manufacturers actually lower the price of the new car - making it a more desirable option.
The ideal buyer for a leftover model would be someone who:
- Doesn't mind waiting to purchase
- Will be keeping the car for over 6 years
- Is flexible with the colors and options
- Is willing to spend lots of time researching and locating vehicles
Sometimes leftover models sell quickly and the deals don't make much sense. Keep that in mind before you commit to buying a leftover vehicle.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
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