Should You Buy a New or Used Car?
It used to be a no-brainer - when it came to buying a car, it was almost always better to buy used instead of new.
Not anymore.
Used car prices are the highest in years and will remain that way until 2013.
Currently there's a shortage of 2- to 5-year old used cars which makes them hard to find � and expensive.
Leasing hit a low point, which means lease returns will decrease over the next few years. Dealers depend on lease returns and trades for their used-car inventory.
While used car prices are higher, new car prices are lower.
Manufacturers are offering huge incentives (rebates, low-interest loans, special lease deals, etc.) on last year's models as well as brand new 2011 models. In many cases, these incentives actually make a new car cheaper than its previous year used model.
Still, if you're buying an older used car in good condition, the old rules still apply.
But if looking for a relatively new used-car, compare the price with the deal you can get on a brand new model. Even if the used model is cheaper, consider the full new-car warranty, lemon law protection, and updated features of the brand new car.
My Recommendation for Car Shoppers
TrueCar, 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.- Gregg Fidan
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
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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