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Used Cars Not Always Cheaper Than New, <em>Edmunds</em> Says

Edmunds.comEdmunds.com Posts: 10,046
edited September 2014 in General

imageUsed Cars Not Always Cheaper Than New, Edmunds Says

Used cars are not always cheaper than new cars, especially when the economic climate is as unusual as it is now, according to Edmunds.

Read the full story here


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Comments

  • pommahpommah Posts: 71
    If you are willing to think beyond just month to month payment, and think about total cost of ownership per mile, it's even more in favor of new cars right now, because when the car is new it has lower maintenance costs.
  • reminderreminder Posts: 383
    Generally speaking, the sweet spot for buying used is around the third year. Recently turned in leases can be a way to get into a lower mileage used vehicle, particularly if the dealership had an arrangement for scheduled maintenance included. Purchasing used at or around the third year, typically nets the buyer 40-45% off MSRP if not more.
    But of course it's all a crap shoot in the end. As always, buyer beware.
  • shatnershatner Posts: 176
    I have been saying it for years that car like Honda's and Toyota's are often a better deal new than used.
    Now something like a Lincoln Town car that depreciated 50% in 3 years is better value used.
  • This is comparing edmund's TMV for used cars wich is notoriously overly ambitious in it's pricing. also used cars are cheaper to insure and register. and this article does not take those additional costs into account Granted you don't get ripped off on the used car it will allways be a little cheaper than the brand new car. how much or how little extra cash is worth it to have that new car smell on the way home is for you to decide.
  • patrickwpatrickw Chicago, IL and Evergreen, COPosts: 32
    The other big factor here (other than higher interest rates for used vehicles) is CPO vehicles: when I buy a used car, I get a good mechanic to look it over and then buy a reliable 3rd-party warranty, thus saving a considerable percentage over CPO prices.
  • steverstever Posts: 52,462
    edited November 2014
    "After peaking last spring, used car prices have been falling for five consecutive months, according to the Manheim Used Vehicle Value Index. The index, considered one of the most reliable in the industry, showed wholesale used vehicle prices were down 0.3 percent in September, the latest month available.

    Credit the price declines to healthy new car sales, which have resulted in more trade-ins showing up on used car lots. In addition, auto experts cited a surge in the number of leased vehicles being turned in to dealerships to be resold."

    Lower used car prices signal a buying opportunity
    (kansascity.com)
  • steverstever Posts: 52,462
    If you bought a new car instead of used because low rates and/or longer-terms loans kept the monthly payments more affordable, please email [email protected] by 9/11/15 to connect with a reporter.
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