Buying a new car can sometimes be cheaper than buying a used one.
If you’re shopping for a car, chances are you’ve heard something like this a million times: Don’t buy a new one, the second you drive it off the lot it loses its value, making a new not worth it. And sure, most of the time that’s true, but sometimes — like right now — buying a new car can actually be cheaper than buying a used one. We know it sounds crazy, but hear us out.
There are a few factors that have to combine to make buying a new car smarter than a used one. The first is that used cars are now priced higher than usual. The Christian Science Monitor reports that because so many people didn’t buy cars in 2009 and 2010, there are now not enough used cars on the market, enabling dealerships to jack up the pricing. Time notes that another factor in favor of buying new is that cars depreciate a lot slower than they used to, so you can hold onto that car longer, thus getting the most bang for your buck.
If you’re thinking of buying a used vehicle from 2009 and beyond, it would be wise to consider all the costs involved in buying a new one as well, to see if it makes more sense to go new. For now at least, you just might be surprised at what you find.
By Chris O’Shea, Savvy Money © 2015 SavvyMoney, Inc.