Posted on 05/30/2013 12:49:52 PM PDT by Responsibility2nd
NEW YORK (TheStreet) -- The U.S. used-car market is facing big supply shortages and unusually high prices these days, so consumers might as well buy certain models new instead of used, since there's little difference in price.
"We're in a bit of a strange situation right now in that there simply isn't a lot of used-car inventory out there," says Eric Lyman of market tracker TrueCar.com.
Dealers have few used cars to sell because not many people bought or leased new vehicles during the 2008-10 economic meltdown, so there's a dearth of 3- to 5-year-old automobiles entering the resale market right now.
That's resulting in higher-than-normal used-car prices, especially since plenty of Americans are still pinching pennies and opting to buy pre-owned vehicles instead of new ones.
At the same time, today's low interest rates mean automakers can offer customers who can afford new vehicles cheap loans and other enticements.
"The incentives that manufacturers are putting on new cars in terms of cut-rate financing or lease deals can actually make new cars more attainable than used ones," Lyman says.
Adding to the similarities between some new- and used-car prices, some models haven't undergone major redesigns in several years, so older versions sell for almost as much as 2013s do.
Here's a look at five vehicles TrueCar recommends consumers buy new instead of used, as you'll save less than 19% by getting 2010 or 2011 versions. (The typical 2- to 3-year-old car costs around 30% less than its new counterpart.)
All savings estimates refer to price differences between the average new car and that of comparable 2- and 3-year-old editions sold between Jan. 1 and May 17 at some 14,000 U.S. dealers that TrueCar tracks.
(Excerpt) Read more at finance.yahoo.com ...
>>Lately I’ve thought to myself: “Take away the car ads from radio and TV and they are bankrupt”. It’s non stop here in NY.
Its nonstop everywhere, but watch the focus of the commercials. It isn’t about the car. Its about the stupid bells and whistles like MP3 players and nav systems for people that can’t find a restaurant on their cell phone.
They are marketing to people who stand in line talking on “last year’s iPhone” for 12 hours to get “this year’s iPhone”.
I checked KBB last year and my 2007 Jeep, excellent condition, very low mileage, now has a higher resell value than what I paid for it in early 2008.
If I traded for a new(er), my personal property tax and auto insurance would increase significantly.
I saw a TV commerical yesterday from a Cadillac dealer offering CPO cars (Certified) with 0.0 financing.
Now THAT is a good deal.
A good 1 year old car with a factory warranty out to 7 years with no interest at thousands below MSRP is VERY interesting.
Sorry, can’t understand your logic.
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Its all about the mileage. Basically there is no difference between a 2009 Honda Fit and a ‘13.
Except of course 60,000 miles.
Most people would rather pay the 3 of 4 thousand bucks extra and get brand new with 0 miles.
“personal property tax “
What state does this?
C4C was 665,000 vehicles.
Your number is incorrect.
That was approximately .26 percent of the US vehicle population.
Got 178K miles on my 03 Avalanche. No intention of trading it in. Runs great. Also have a 2004 Silverado 2500 that’s entirely paid off. That one’s not going to traded in or sold either.
I’m that way about refinancing my house. Yeah, I can get a slightly better rate but it’ll take a lot more years for me to be able to burn the mortgage, so I soldier on. I want it paid off when I retire.
Yes - these adds seem to be selling smartphones on wheels. Rented a few of these vehicles lately for work travel. Highly disracting, IMHO.
***** “Until the A/C dies” ******
I live in South Texas, the only time I ever turn on the AC is to de-fog my windshield (and my Mech may turn it on to check it) If I wanted to be cold I would have moved to Alaska.
I am on my 3rd Diesel Truck ... only have 150k on it... I will never need to replace it (unless I wreck it) ... another vehicle for fun maybe.
TT
;^)
The people who get the best deals know two things; what the new car cost the dealer and what they can expect the dealer to sell their old car for. I knew the price that the dealer paid for my wife’s minivan and I got it for $4500 off the list. No trade in, just cash down.
I have not made a payment on my car for 7 years. My wife asked me when I was getting a new car, I told her when this one breaks down. Or the AC goes out.
When all is said and done, it may not be better than the standard 3% to 4% available to the hoi polloi.
>>I live in South Texas, the only time I ever turn on the AC is to de-fog my windshield (and my Mech may turn it on to check it) If I wanted to be cold I would have moved to Alaska.
That’s the best thing about FR. You can always find a tough guy! Make a comment about toilet paper and it takes about 5 minutes to get a reply from a guy who wipes his butt with cardboard boxes!!
Connecticut, of course..
Arkansas
Pfft...
Real men use 60-grit sandpaper... And scrub vigorously...
>>Real men use 60-grit sandpaper... And scrub vigorously...
but you have to buy that. The Tough Guy steals boxes from homeless people to wipe with...and then returns them!
That’s funny, I just bought a 2013 Dodge Challenger R/T T/A. It’s a monster! The cars really do hold their value well.
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