The Pros and Cons of Buying Discontinued Cars


Mar 31st, 2020

The Pros and Cons of Buying Discontinued Cars

GM’s recent announcement about discontinuing Holden has raised a crucial question: is investing in discontinued cars a good move? While you may be tempted to visit your nearest dealership and buy a Commodore, Acadia, Colorado, or Astra, there are potential advantages and disadvantages that you need to consider.

If you make the right choice, your vehicle could increase in value over time. There’s also a chance that you could snag a bargain on a car after the manufacturer has pulled the plug on it. Generally, though, buying the last units of a model is not the safest thing to do.

The Pros of Buying a Discontinued Car

Here are the benefits of buying a discontinued car.

Discounted Prices at Dealerships

A car model that is out of production may still be available at car dealerships and offered at a cut-rate price. Dealerships will be eager to clear out existing stocks to make room for new releases. Some dealerships also offer package deals that come with complimentary car parts or services as an incentive to buyers.

Financing Available at Lower Interest Rates

Some dealerships offer customers a 0% financing deal on new cars that are being discontinued, but the deal might not be available for older models.

Potential to Earn Money

A discontinued car model becomes a rare commodity. While it may not offer superior performance over newer models, its rarity may lend it a higher market value. It usually happens to models with loyal followership or one that has established a name and fanbase over the years. Case in point is the Holden Commodore, especially those generations built locally.

The Cons of Buying a Discontinued Car

While the potential benefits of purchasing a phased-out vehicle may seem attractive, you should also consider the potential drawbacks before buying one.

Resale Value May Drastically Fall

These cars can decline in value drastically, especially if the reason the manufacturers are withdrawing them from the market is receding sales. There is no saying what the value of a discontinued car will be over time, so investing in it is a gamble at best.

Parts Will Not Be Easily Available

When it comes to parts and car accessories, discontinued models will often be at the receiving end of auto parts shortage and overpricing. Not only does this impact on the resale value of the car but also poses a challenge during repairs. 

May Cost More

Dealerships will try to win buyers over with insanely cheap deals for discontinued models. If you've taken the bait, you may have saved cash upfront but end up spending more in the long run because finding parts will cost you enormous time and money. 

For Holden, however, it's tied up to its buyers for ten years more, so that won't be a problem before then. For other makes and models, your last resort would be auto wreckers and secondhand car part suppliers. 

The Car May Not Be Safe

Some models are withdrawn from the market because they pose a safety hazard. Buying such cars can put your life in danger. Make sure you check out the reasons why a vehicle is being pulled out of the production lines before buying it.

Should You Buy a Discontinued Car?

In Holden's case, General Motors has stated that warranty and service support would remain available for Holden cars for ten years. Around 200 employees will be retained to provide after-sales care for this period.

Still, experts are anticipating that Holden vehicles currently available at dealerships would decline by up to 10% in value in the resale market. Hence, you should only purchase them if you wish to keep using the vehicle for a long period. With after-sales support remaining in place over the next decade, you will have access to car parts as well.

Other Cars Discontinued in Australia this Year

Holden is not the only marque to close shop in Australia. There have been several other announcements by carmakers about withdrawing some of their models from the country. Some of these are:

1) Alfa Romeo Giulietta – production is expected to halt globally this year, following the discontinuation of the Alfa Romeo 4C in the late 2019. 

2) BMW i8 – the German carmaker made an announcement back in February that the i8 hybrid would be halted after seven years in production. In Australia, the car has sold around 155 units since its launch in 2014. 

3) Ford EcoSport – the company is no longer adding new units to the EcoSport stock in the country, as the vehicle has been discontinued for the Australian market. 

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By Muhammad A. Lashari