Buying a New Car May Actually Be Cheaper Than a Used Car
Written by Joseph Perry on July 6, 2010.
Conventional wisdom has always taught us that springing for a new car instead of a slightly used car was a financial mistake. In fact, I’ve written about what you need to know before buying your next car and buying used over new was one of my key points. The reason is that cars are depreciating assets and it isn’t uncommon for a new car to lose anywhere from 10-20 percent of its value in the first year. So, if a savvy consumer is shopping for a car it often makes sense to get a used model about a year old with low miles. This way the original owner takes the greatest depreciation hit while they get an almost new car still covered under warranty.
Well, the economy has changed the game for many makes and models and in some cases you can actually buy a new car for less than the same car used. New data from Comerica Bank’s Auto Affordability Index shows that new cars are now the most affordable they’ve been since records started being kept in 1979. In fact