Buying A Car New Model Vs Old Model
This time of year car dealers fill their lots with the latest new car models, ready to sell. As part of that transition, car dealers will offer special incentives for the previous year model. It is their attempt to clear inventory from their lots—physical space—in order to literally make room for the new car and truck models.
Regardless of which direction you go, buying the newest model versus the older model, you will need a good, low interest car loan. If you are trying to decide to buy the new model versus the older model, there are a few questions you should ask:
1. Is there a difference in the warranty?
Car dealers frequently lower the price of the still brand new, yet older model car as an incentive to buy. Be sure to check that the warranty hasn’t changed or was reduced, as well. Some vehicles have coverage on various parts (5-year/50,000 miles, for example.) Be sure the yearly limit starts when you purchased the car, not when it arrived at the car dealership, many months ago.
2. Exactly what was changed with the new model?
Often the changes to the new model are aesthetic in nature, but some of the updates may be safety related too. Getting a clear answer about what was changed with the new model will provide insights. Was there a change to the older model that was changed again on the new model? For example, if the car brand updated the transmission on the older model, then updated it again on the newer model, it may indicate a design issue with the previous update that could cause trouble later on.
3. Consider your loan options as well.
Some car dealerships offer their own financing via their preferred options, which is a bank of their choosing. Their preferred financial provider was chosen on what was best for them, which may not be what is best for you.
BMI FCU offers low-interest car and truck loans that are designed for your specific needs. There is no application fee, and a convenient, online loan closing process. You can even be pre-approved before you go car shopping.
Asking a few questions and getting the right financing set up will help make your car or truck shopping experience a good one. And it will help you decide if you want to buy the latest model, or take advantage of a better deal on the previous year’s model as the fall car buying season begins.