Posted on 01/05/2024 9:37:04 AM PST by SeekAndFind
It’s been a tough few years for car buyers. Pandemic-related chip shortages sent car prices soaring. Russia’s invasion of Ukraine in 2022 only made things worse.
However, the dust may be settling on car prices -- especially used car prices.
According to CarGurus, the average used car price has been on a downward trend since last summer. As of 2 January 2024, it’s $28,247.
While that may sound high, it’s nearly $20,000 lower than the average new car price, which is over $48,000, according to Consumer Reports.
The truth is that buying a used car is almost always cheaper than buying a new one (unless it’s a luxury or collectible car that appreciates in value). It often means getting more bang for your buck.
But now that used car prices have fallen more rapidly than new car prices have, buying a used car may be an especially good deal.
On top of the lower sticker price, used cars have other cost benefits. For one, they depreciate at a slower rate. According to Kelley Blue Book, cars typically depreciate by 20% in their first year (about 11% is lost as soon as you drive the car off the lot). After that, they lose about 60% of their value within the first five years (about 10% per year).
This means that buying a brand-new car makes the least financial sense because you’re taking the biggest immediate loss. For example, 11% on a $50,000 car is $5,500.
By buying a car that’s at least a few years old, you’re letting the previous owner take the biggest depreciation hit.
According to Tiger Okeley at used car dealership Oak Motors, “Depreciation is an unavoidable part of car ownership. But savvy buyers know they can get a major discount by buying a used car with under 60,000 miles
(Excerpt) Read more at americanthinker.com ...
The best used cars are all circa 2007 and earlier because they lack the onboard monitoring/surveillance systems of cars built after that.
I always have purchased vehicles new. But if I were to consider purchasing a used vehicle, I would have a competent, trusted mechanic thoroughly inspect it first.
I’ve never purchased a new car, despite having owned 220+ cars and bikes. The closest I’ve ever come was dealer demos. Let someone else take the depreciation hit for crossing the curb.
I would also want an older used vehicle that has available replacement parts for possible future repairs.
Soon cars with internal combustion engines will be priceless. Makes sense to but a well made Japanese ICE car and store it for use in 7-10 years.
Why are car sales people almost universally ugly?
I’m doing just this tomorrow morning
Driving tonite to get it in morning
I just bought a VERY nice 2003 Chrysler 300M for $6k, with 90k miles. Inside and out it looks like a new car:
https://www.youtube.com/watch?v=2Ga2nI-OLws
If you plan to keep it 10+ yrs buy new.
I haven’t purchased a new car in over 25 years. I am always on the lookout for older vehicles with low mileage, usually in estates. When I come across one, I buy it for cash.
I am currently driving a 12-year-old truck that I bought 4 years ago with only 20K miles on it. My wife is driving a 20-year-old Lincoln that currently has only 25K miles on it.
If America’s workers bought used clothes and shoes it would make Biden’s economy look better too. And save money for families.
And maybe rather than eating out sometimes if the working people of our country begged for food on the street it would help Biden look better too.
Yes, we should all do that and be grateful and when Biden goes out we should all cheer like they do in North Korea.
Assuming that the government will allow you to buy gasoline in 7-10 years. If you are allowed to buy it, it will probably cost more than $10 per gallon.
I am thinking of buying a used diesel vehicle as my backup. Worst case you can run them on vegetable oil.
I just had to replace a car. Normally I’m against buying new but all the late model, low mileage cars were only less than a $1000 cheaper than a new one.
I recently replaced an aging, rotted out 2003 Subaru Legacy wagon with a 2012 Scion xB from CA, with 72k miles. Clean, never seen a Maine (salty) winter, runs like a top. Toyota quality. I ran it through the RustCheck shop to keep it fresh and new on the underside.
Meanwhile, my kid sister insists on buying new cars every few years, pays huge excise taxes, eats huge depreciation, then trades it in; rinse and repeat. BTW, she’s a Biden voter. No surprise there.
When my wife and I were first married it made economic sense to buy new and trade in every 3-4 years. It became clear to us this was no longer making sense after we traded our ‘86 Pontiac for a new 1990 Mazda Protege (for which we paid about $12K). We had to fight tooth and nail to get out from under the ‘86 without taking a loss. So it has been 34 years since we bought new, and we’ve owned some great cars. (Yikes, I’m old!) Buy an extended warranty (but read the fine print) if you’re scared of buying used.
That's nearly $1400/mon.....before insurance, maintenance, etc.
I bought a 09 highlander for $6300, cash two years ago.
Works like a dream. Just hit 200k miles.
Never buy new or recently new.
Buy an older Toyota Yaris with less than 150 k miles. 35 to 40 mpg. Rock solid reliable sub compact. Safe.
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