Buying a New Car Can Be Cheaper Than Buying Used
A new car cheaper than a used one? Has there been a break in the time/space continuum?
No. It's simply a matter of low depreciation for certain cars combined with high incentives (often including low-interest financing).
The new-cheaper-than-used phenomenon is most common in the large-truck and luxury-car category (Luxury SUVs too).
The biggest new-over-used savings was with the 2010 Audi S4, Premium Plus quattro 4dr Sedan AWD. Over five years of financing, the new car is $5,460 cheaper than a one-year-old used S4.
Another big saving comes from buying a 2010 GMC Sierra 3500HD SLT 4dr Crew Cab 4WD instead of the previous year's model, saving $1,620 over five years' time.
General Motors was the manufacturer with the highest number of new-cheaper-than-used models, with Honda second and BMW, Nissan and Volkswagen tied for third.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
New York Tri-State Residents - Important:There is a new car leasing service called Carvoy, available to NY tri-state area residents, which I recommend you try - especially if you hate the stress of haggling with car dealerships. Carvoy provides pre-negotiated lease deals, calculated with taxes and all fees incuded so you know exactly what it will cost. Here is my list of Best Carvoy deals, updated each month.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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