Despite the pandemic and economic uncertainty, this maybe the best time to buy a new car. To entice consumers worried about job security—and to clear out an inventory glut due to slow sales—car manufacturers and dealers have pushed low-interest and 0 percent financing and loan terms of seven years and longer for new cars, with initial payments sometimes deferred by two or three months. Other common incentives include cash back or deep discounts off the manufacturer’s suggested retail price (MSRP).
Regardless of the economy, smart money is usually on buying used. The advantage over new cars is well-known: Depending on the model, depreciation can make used cars a lot less expensive. A new car on average loses slightly more than half of its value in the first three years. If you buy a highly rated, used vehicle, you maybe happy for years to come. Many leasing customer decide to turn in their vehicles on time (at the end of the lease), adding to the surplus of newer used cars. These cars usually have less than 50,000 miles. Car these days, maintained properly will last 200,000 plus miles. Again I recommend using Kelly Blue Book, Edmond or Consumer Reports. Also ask if a carfax is available. This will tell you of any accidents.
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