9 Cars to Buy New Rather Than Used
Researchers at iSeeCars.com found nine vehicles that may be a better buy new rather than a year old. There are also eight vehicles that offer substantial savings if you buy the one-year-old model rather than the new one.
Everyone has heard or read about how much value a new vehicle loses as soon as the proud owner drives it off the dealer’s lot. Not all vehicles are created equal, however.
The overall average difference between the price of a new car and the price of a one-year-old car was 28.6%, or about $7,650. That’s how much value that vehicle lost in just one year.
The researchers also found nine vehicles that could be purchased new for a lot less than that average difference. One, the Jeep Wrangler Unlimited, lost just 8.9% ($3,199) of its new-vehicle price after one year.
To get that number, researchers at iSeeCars.com analyzed more than 6 million sales of new and used cars between August of last year and January 24, comparing the prices of new cars to a one-year-old version of the same model. Company CEO Phong Ly commented:
Instead of buying a car that’s been driven for one year, consumers can buy the new version for just a few thousand dollars more and take advantage of the latest and greatest technological and safety features. When spread out over the length of a car loan at an average of 5.5 years, the slightly increased monthly payments can be offset by the added warranty and dealer incentives.
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Interestingly, of the nine vehicles that made the list, four are pickup trucks and four more are sport utility vehicles. The lone passenger car is really a sports car. Here’s the list, including the percentage and price premium for a new vehicle compared to a one-year-old version of the same model.
- Jeep Wrangler Unlimited: 8.9% premium for new, or $3,199
- Toyota Tacoma: 10.4% premium, or $3,320
- Toyota 4Runner: 12.7% premium, or $4,605
- Nissan Frontier: 13.3% premium, or $3,180
- Honda Pilot: 13.7% premium, or $4,858
- Chevrolet Colorado: 13.7% premium, or $4,154
- Honda HR-V: 13.8% premium, or $2,885
- Jeep Renegade: 14.1% premium, or $2,897
- Subaru WRX: 14.2% premium, or $4,115
iSeeCars.com also looked at the vehicles that lost the most value after one year of ownership. The researchers found eight that lost significantly more than the average first-year loss of $7,654. These are virtually all luxury models, so if you are in the market for a luxury vehicle, you can save a significant amount of cash by buying one that is a year old.
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Here’s the list, including the percentage and amount of savings when buying a year-old vehicle compared to a new model.
- Cadillac XTS: 38.7% savings, or $20,965
- Jeep Compass: 34.8% savings, or $9,652
- Mercedes-Benz E-Class: 34.5%, or $22,919
- Lincoln MKZ: 33.7% savings, or $14,328
- Cadillac CTS: 33.4% savings, or $18,170
- Infiniti Q50: 32.2% savings, or $14,654
- Toyota Camry: 30.7% savings, or $8,213
- Kia Sedona: 30.0% savings, or $9,682
For more details and insight, visit the iSeeCars.com website.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
