Because new cars tend to lose value rapidly, the conventional wisdom is that it usually makes more sense to buy a used vehicle instead of a new one. But is this rule of thumb always true? Has it changed in the past few years? She writes:. Time Moneyland recently reported that used vehicle prices have hit a year high.
On the radio, car companies are asking people to trade in their used cars because their inventory is low. I keep hearing that if you want to save money, you should only buy a used car. But is this only true for some makes and models? Is that why some of these used cars cost so much? I guess my question is: When looking for reliable transportation in a standard low-cost car, is it better to buy new or used?
In general, new cars do lose value quickly. But due to a variety of factors, prices on used cars are indeed high right now. Your specific circumstances may differ. If you intend to own the car for many years β to drive the thing into the ground β then a new car can often be a good choice.
My next Mini may be purchased new, too. The key to making a smart choice is to take your time and crunch the numbers, just as Lily is doing. When I was shopping for a used Mini Cooper a couple of years ago, I spent a lot of time playing with web tools like these:.
Buying a used car can be filled with all sorts of pitfalls. It helps to do be as prepared as possible. Last December, Consumer Reports posted a step-by-step guide to buying a used car.
