subject: Could New Cars Be Cheaper Than Used? [print this page] I was driving down IH-35 yesterday when it hit me. As I drove past a local Chevrolet dealership, I noticed a Tahoe with a sticker on the windshield that read "$7,800 off". This was just one of the many amazing price reduction stickers blanketing the windshields of new Chevy's along the highway. Car after car, dealership after dealership, new car prices are falling.
Are you thinking of buying used? You might be wiser to think new. Our recent, tumultuous economy combined with an increasing necessity for vehicle manufacturers to drive up their sales numbers has created an exceptional prospect for new car buyers. A current study by Edmunds.com shows you may now be able to buy a new car for less than a same model used car.
Over the past 18 months auto lenders have really tightened their belts, due to the spasmodic economy, which has driven a huge number of buyers to the used car dealership. And, as we all know, when demand rises, normally prices rise too. Therefore, the average price of a 3-year-old used car has risen 11.5 percent over last year. However, as used car prices rise, vehicle makers are cutting their prices drastically.
As I studied this concept further, I found some interesting information. There are now 41 new vehicles that cost less to buy new than used, when you compare a new model to a one year old vehicle, make zero down payment, and finance the purchase for 5 years, according to the Edmunds.com study. The same study also reveals 93 other new car models that are no different in cost whether you buy new or used. What does this mean to you? You should research before you buy. There are some very good deals out there for you to find.
Detroit released numbers that show U.S. car sales stalling. Sales of most manufacturers were higher this June compared to last year, but they are lower than March, April, and May. Toyota reported June sales were down 14 percent from May, GM reported a decrease of 13 percent, and Ford's sales dropped 11 percent.
Recent statements from both car makers and analysts show concern that the recovery of the new car market may be pressing the brake pedal. Vehicle manufacturers are moving forward with concern and question as the economy continues to hickup, credit continues to show restraint, and buyers continue to show fear. Who knows what tomorrow may bring? So, it is probable that auto makers will continue to peel back prices at the showroom.
Paul Taylor, chief economist of the National Automobile Dealers Association says the gap between new and used cars that has been narrowing for the past 18 months will continue for "at least another year" in an article by Gregory Karp in the Chicago Tribune. So, if your finances or fears of the economic future are making you think used, you should do your homework. New may be a better choice.
