Shopping for Cars Tip #2 – New to you is as Good as New

This post may contain affiliate links. Please see Full Disclosure Policy for more information.
Shopping for Cars
shopping for cars

Because I followed tips in this series, I was able to score this 2010 BMW 535i for 50% off the retail sticker price!

Shopping for cars can be fun. The anticipation of finally replacing that old clunker is exhilarating. If you followed our advice in Shopping for Cars Tip #1, and have been patient, the reward will very much be worth the wait. The next tip is really quite simple and very straightforward: Buy used vehicles. I am sure that you have heard the cliche that a car depreciates 30% the minute you drive it off the lot. It’s honestly not too far from the truth. Once a new car is driven, it’s no longer new. I realize that there is a certain aura to having a new car. The smell is unparalleled. The fresh scent of new leather, mixed with the aroma of clean carpet, is one that you honestly can’t get enough of. It’s probably my next favorite scent to a freshly bathed baby swaddled in your arms. However, you can actually replicate the scent of a clean car. They make products for that. My advice is: spend the 5 bucks for a good air freshener and save thousands on the purchase of your vehicle.

Where I Get My Inspiration

In his books The Millionaire Next Door and The Millionaire Mind, Dr. Thomas J. Stanley outlines the car buying habits of the average millionaire in the United States today. The results of his study are astounding! While many of us have the preconceived notion that millionaires only drive expensive high-end automobiles fresh off the lot, that couldn’t be further from the truth. Granted, there are plenty of “ultra-wealthy” people out there that drive Ferraris and Lambos, but not the average millionaire. The average millionaire in our country today buys a used car that is 2-3 years old, has low mileage and has solid reviews. That almost sounds too easy, doesn’t it?

If you have heard me speak in our live webinars, you know that I have only really bought one new car in my entire life. I did it because I was young, stupid and had a sense of entitlement that was bigger than my bank account. I decided that I needed to have a BMW and I had the car payment to prove it. I loved that car. I loved that car so much that I let it drive me into debt as far as I could go without declaring bankruptcy. I drove that car for 13 years. When I finally had it towed out of my driveway, it had nearly 230,000 miles on it. In the end, I got my money’s worth, but it was more out of necessity than common sense. I bought a used Crown Victoria for $3,000 and drove it for the next 2.5 years, all the while dreaming about the day I could buy another BMW the right way. Because I had reliable transportation, I could afford to be very, very patient. Because I had set up a Car Accrual Account, and already had the money to pay for my car, I could afford to be even more patient. Unfortunately, I had to replace the Crown Vic sooner that I would have liked, which lead to us buying 2 cars over a 3 week time period. What did I do?

How Shopping for Cars Served Me the Right Way

First I followed tip #1. I listed out all of the features that I wanted to have in a car. If I could have every single thing that I wanted, what would I get? I also began to shop around online and used the search filters in every dealer site to see what types of vehicles were available in my price range. What I found was astounding! I found out that Tom Stanley is dead on the money in his books! Sure, I talk about them all the time and I have read them multiple times, but I have never really had to put them to the test. This time I did. What I found was that the majority of the cars that were in my price range, and were able to fulfill my list of desires, were 3 years old with less than 30,000 miles on them. They were factory certified and were eligible for a 6 year 100,000 mile extended warranty! Thank you Mr. Stanley. Because I read the habits of the average millionaire, and decided to make a decision that they would make, I was finding a really good deal on exactly what I wanted. Once I got all of my ducks in a row, I executed on Tip #3, which is our next installment.


Learn More About Managing the Money Here

92d3fe425d250a07f0690e7b9446fd75d36d34df8c1539a41f 92d3fe425d250a07f0690e7b9446fd75d36d34df8c1539a41f