The
Stormy Skies of Depreciation
Checking
out a snazzy, new 2006 vehicle? Beware. According to the experts at Kelley Blue
Book, in three years that new car could lose up to 73 percent of its value. At
best it will retain a mere 62 percent of its value after three years.
Depreciation is the dark cloud hanging over new car purchases. While most
vehicles lose 15 to 20 percent of their value each year, the first year tends to
hurt the most. In fact, the two-minute drive off the lot can cost some owners
up to 15 percent of their new vehicle’s value. This instant loss reflects the
difference between the wholesale price – what the dealer pays – and the retail
price – what you pay.
For credit
union members unwilling to throw away money on depreciation for that new-car
smell, a high‑quality, late-model used vehicle is the answer. Used automobiles
have cost-saving benefits above and beyond the depreciation. Some of the
benefits of buying a used car include:
In the
past few years, more than 40 million used vehicles were sold in the United
States. Credit unions are financing many of these vehicles and offering members
good deals. In fact, credit unions are making headlines for their superior
used-car financing options. This past summer, Newsday encouraged readers
looking for a bargain to check out their local credit union, citing that credit
unions, “beat banks by an even larger margin for used-car loans, averaging 5.5
percent, compared with 8.62 percent at banks.”
For
instance, thousands of credit unions have partnered with Enterprise Car Sales,
due in large part to Enterprise’s guarantee that credit union members will be
treated with honest and integrity. Enterprise offers consumers more than
120 makes and models of high-quality, late-model ASE-certified used vehicles
that are priced below NADA or Kelley Blue Book values, and include a
12-month/12,000-mile limited power train warranty. Best of all, members
have no fear of depreciation or even buyer’s remorse from driving off the lot.
Every Enterprise vehicle comes with a seven day/1,000 mile repurchase policy.
- Thanks to Enterprise Car Sales for this informative article.
Are
you in the market for a new or used vehicle? Enterprise Car Sales offers great
used vehicles with low mileage and warranties. Carfax and Chrome Car Book are
free links you may use to search for the vehicle of your dreams.
It's
always a good idea to be pre-approved by VBSFCU before shopping for a vehicle.
We review your credit report (with you for free) and will help you make the
right decision on how much you can afford before you shop. Please visit our
rates page for current rate
information. Ready to apply for a loan? Click
here to go to our online loan
application.
