Precision Acura Of Princeton

We've all seen the commercials from all the different manufacturers advertising Year End Clearance Sales on their left over models. Although many people can get some very good prices during these events, is it really less expensive? The answer is a little more complex than just yes or no. The vehicle is probably less expensive at the time of purchase at the year end clearance but total value is really the more important consideration. Let's look at an example. Let's say you can buy a 2010 Any Make Any Model for $2000 less than a 2011 Any Make Any Model. Most people would say you saved $2000 but in reality unless you plan on keeping the vehicle until it dies then you probably, in the long run, spent more.

Why?

The answer is simple. When you're ready to sell or trade your 2010 Any Make Any Model chances are the vehicle will be significantly lower in value than the 2011 Any Make Any Model so the amount you saved upfront is lost, and many times even more is lost, when you get out of your vehicle. It will be even worse if the model you pay less for has a redesign in the new model year. The loss will be significantly more at trade in time. Make sure when you make the decision to buy a Year End Clearance Special that you consider all these factors before doing it.

The situation is similar for leasing except many times can be the opposite. Many times the newer model Any Make Any Model will lease for less than the older one. Keep in mind that the older Any Make Any Model has already depreciated a full year so the residual values are at their lowest. As an example the 2010 Acura RDX's residuals are as much as 6% lower than the 2011s. That difference could make up for much of the increase in selling price. Make sure you are aware of these differences when you decide on your new vehicle.

I remember back when I first got into the car business when all leases were advertised with no money down. Of course, that was 27 years ago when we were one of the only companies advertising leasing at that time. I was a pioneer in leasing as much as I've been a pioneer on the eCommerce side of the business when I started an eCommerce department 10 years ago.