Some New Cars Now Cheaper Than Used Cars - Edmunds.com

My local paper ran this article today so I thought I would share. Very interesting, we have many sources to blame for this. Lets not get too heated and kick it to the club.

 

The link is currently dead, but I've noticed over the years that the statement is many times true, and car salesmen have agreed. Im not commenting on the article since I cant read it, but my own observations.

If it is a car or truck model not dumped into rental fleets or heavily subsidized leases, it does not pay to buy "certified" or otherwise late model used over new. Yes, if you actually want an Impala, Sebring, Taurus, or the like, depreciation is huge. On the other hand, a 3year old BMW 3-series just off lease sells for 80% of new MSRP, and while it has the Certified warranty, it also is usually just about ready for tires and brakes. More important, it is still not brand new. The paint, seals, interior all have 3 years exposure to the environment. More OT to this list, an F-series also retails used for sometimes more than the "deal" you can get on a new one. Expected profit from used at a dealership is higher than any profit at all they can eek out from a new sale or lease. I cant explain the business logic, thats what sales people have told me.

Jim

 

It is damn near happening in our area with Rangers 1-2 year old Ranger is just about the same price as a new one with the rebates right now. When I bought my new Bullitt in March of '09 I know I paid less for it than some people were paying for used Mustangs at the same time.

I would say at least in Ford's case the CPO cars effect this somewhat because they come with a larger warranty than a new vehicle does.

 

well it may not pay to buy a used in many of the cases , but my wifes current "new" mini van , a gm it was her pick not mine !!!!!! , we got a much better deal on one that was one of the vehicles that got used by the manufacturer's employees . it is a completely loaded except for the dvd / tv , extended wheel base uplander van . it had 5,000 miles on it , full warranty , and they were so hard up for sales we got it for 10,500 out the door ............ don't think i would'a got a new one for that !!!! it's an 08 and was only 6 months old when we got it ...................

 

i've noticed this recently, the used car market is in my opinion overpriced. i played this to my advantage recently selling my excursion though...i made $2500 on it. owned it a year and put 20k miles on it and made money on it...how often does that happen?

right now if you can afford it is a great time to buy new!

 

Over at TTAC there was an article explaining why, at the lower end of the market, late spring is the best time to sell, and the worst to buy used. The "Earned Income Tax Credit" (Nixon's reverse income tax form of welfare) puts extra cash in the pockets of the working poor that often goes toward a down payment on a used car.

Jim

 

I just hung a for sale sign on my '88 F-150 as I don't intend to repair the clutch or the small amount of rust that has formed on it over the years.

I consider the truck to be in fair condition as it needs minor body work and paint and a new clutch. Amazingly enough, KBB lists it as being worth about $1900. A couple of years ago when I checked the value, it was worth a little less.