As human beings indoctrinated in the current social landscapes we find ourselves bathing in on a daily basis, many of us have very materialistic taste. We are drawn to the expensive toys we see the elite indulge in frequently and find ourselves contouring our lives to fit the grind it requires to begin and maintain expensive lifestyles. This can be often noticed in people choice in vehicles. Sadly enough, many people spend a majority of their money on a very nice looking car as opposed to securing a home first. No judgment as much of America is financially illiterate and truthfully does not know better. A $30K car payment for a few years seems a lot more feasible than hundreds of thousands of dollars over 30 years. That could be very intimidating to anyone whose budget craps out at a single comma. However according to the financialsamurai.com1, the 1/10th rule is suggested where you purchase vehicles that only cost 1/10th of your income. Otherwise, people realistically do not need to pay more than $5000 for a car.
Seeing how we are human beings and that hopefully does not change any time soon, we are going to blow past this rule and buy the most awesome vehicle on the market that’ll get us maximum likes. This article isn’t to detour you from your awesome dream of driving down the highways in a fancy new vehicle, equipped with newest of the new car smells. It’s many of our dreams to stop riding dirty and start riding in luxury. You don’t have to break the bank when going after your dream ride.
Car shoppers have the tendency to shop for the newest models on the market. The problem with this is you’re paying a heftier price tag for the 2019 number when the differences between 2018 and 2019 features is minimal at best. Manufacturers make very subtle changes to their New Year models of popular vehicles. Similar to cell phones, you don’t want to throw too many features in one model or subsequent sales will suffer. Not to mention the train wreck you could cause by trying to throw everything in the car including the kitchen sink. Technology is becoming easier for consumers to use, but more difficult to integrate different technology given the competitive technological market space. So even though they may have a number of new features, they’ll space them out over years to make it seem like the car is continually evolving. Then once all features have been rolled out, they hit you with the new model with not as awesome features, but awesome body.
This is why the argument is made, to purchase 2018 vehicles over 2019. You will save thousands of dollars on your car and still end up with a new car with all the bells and whistles. Not to mention dealerships are in a frantic hurry to get rid of the old cars and make space for the new models where they’ll make more money. These incentives are passed down to the consumer, so hold off before purchasing that fancy new 2019 whatever.
A common misunderstanding about purchasing future models of cars is that the next model will be better, more cost effective and have more bells and whistles for less money. That unfortunate piece of fiction is very far from the truth. Sure new models are released every year, but typically do not differ too much from the previous year’s model. Here’s what a 6 year model cycle looks like in the auto industry: In years 1 and 2, the vehicles pretty much stay the same. You’re not going to see much difference in these models. In the 3rd year, the model has some cosmetic changes done. Not to noticeable. Maybe the curve in the light changes or they add an extra LED. Some models will add new colors with the exact same features for more. In the 4th and 5th years, once again, there are no changes made to the models. Finally, in the 6th year, the start redesigning the car. So in actuality, rather than looking for a 2019 model, you need to have your eyes set on 2025 models.
Dealerships are trying to get out their latest and greatest models. They understand there isn’t much benefit in jumping from a 2018 to a 2019. The dealership will receive the benefits, but the consumer gets the same car for more money. Towards the end of the year, consumers start seeing incredible deals on 2018 models because the cars depreciate in value with the changing over the years. They already have incredible mark ups of their new vehicles, so by dropping the cost of their older cars, they still gain to make a profit. The only difference is, us as consumers get to enjoy the benefits of less expensive new cars. Dealerships can only hold so much inventory on the lot. They will of course put the newer models up front, causing the older models to collect dust, so there is great incentive for them to let go of the cars for a lot cheaper.
Research for yourself. Take a look at your preferred 2019 SUV and notice the features. Go to a year prior and see if you noticed a huge difference. If not, you know what you’ll need to do to save yourself tens of thousands of dollars over the life of a car purchase. Go for the 2018 and don’t be swayed by the pretty shiny color of a brand new 2019 SUV.