It’s personal finance 101 that you’ll always get a better deal when you buy a used car. The original owner takes the depreciation hit and you get a barely-used car for 2/3rd of the price (or less!). You can take this a step further, though, a look for cars from dead manufacturers. Cars such as Saab, Oldsmobile and Pontiac are among 10 car brands that are no longer in production, but are still widely available on the used market.
Supply Vs. Demand
Supply and demand is the most basic economic concept. If there’s a large supply, but limited demand, prices decrease. Demand is relatively low for these types of vehicles. That means you can find great deals. This works best with a private party, but some dealers may discount the price due to limited demand.
Demand is low because people don’t understand what it means to have a car from a dead manufacturer. They wrongfully think that as soon as something breaks that the car will be unfixable. This is resoundingly false.
Dealing With Repairs
The biggest objection people have to buying a dead car brand is dealing with repairs. Can you find parts? Will mechanics be willing to work on this? The answer to both questions is a resounding yes. The aftermarket auto parts industry is huge. There are thousands of companies that do nothing but manufacturer and distribute hard-to-find parts. For example, a quick search for SAAB 55559955, the part number for a Saab ignition coil, yields thousands of results.
When it comes to mechanics, most will work on any car regardless of the brand. Again, a quick search for Saab mechanics returned over 800,000 results. The fact that the car is no longer in production doesn’t make much of a difference when it comes to repairs.
When it Comes Time to Sell
Inevitably, there will come a time where you are on the other side of the transaction. For one reason or another, you will be selling that car that’s no longer in production. How do you beat the arguments that you used when purchasing it? Always be diligent and you will make the most on your used car. Here are some specific tips.
- Keep impeccable maintenance records. This not only shows how mechanically sound the car is, but it also shows how easy it is to have repairs done.
- Appearances are everything. Do a full detail job. The better the car physically looks, the less the buyer will be concerned with minor mechanical issues.
- Advertise the car better than anyone else. The more eyes you can get on the car, the better chance you have of getting an offer.
Don’t pass on a great deal of a car just because the manufacturer is no longer around. Take advantage of the opportunity to get a great car on the cheap. Be educated and informed and you’ll see that the concerns that cause other people to pass on the deal is what keeps more cash in your pocket.