When a new car is cheaper

Think a new car always costs more than its gently used counterpart? Think again

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From the November 2014 issue of the magazine.

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(Getty Images)

(Getty Images)

What costs more: a new car or a used one? Surprisingly, if you’re using financing, sometimes the new car is actually cheaper. Edmunds.com has compiled a list of new vehicles that are less expensive to buy compared to their one-year-old counterparts. For instance, a new Ford Focus hatchback would be $600 less. The reason? Used cars are generally financed at a higher rate than new cars.

9 comments on “When a new car is cheaper

  1. Why did I have to give my birth date to sign up to obtain access to this article. This personal information could be used for an identity theft. Especially for such a short paragraph of information. I expected an entire page, not just a paragraph.

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    • I agree with the comment above!!

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      • Totally agree. This “article” seems more like a watercooler comment rather than any comprhensive research worthy of publishing as any sort of
        comprehensive research and insight.
        come on guys,, we expect analysis and data not this.

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  2. This is a bad article because it assumes everyone finances their vehicle – new or used. If you can save up $7,000-10,000 (or four years worth of new-car payments) then you can pay cash for a gently-used car that will likely last another decade if you take care of it. Or you can splash out $20,000 – $25,000 for a new one with zero percent financing and pay it off over the next seven years. If you decide to sell or trade it in at any point during that pay-off period, you will be upside down on your loan. Don’t finance a depreciating asset.

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    • the article states “if your using financing” read before you type

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    • Why not finance a depreciating asset? If you finance through the dealer you could be paying as little as 0% interest. If you finance via a line of credit you could be paying just 4%. If you have the cash and don’t finance you could be paying 7% in lost investment opportunity!

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  3. this is a USA website the price will be totally different up here in Canada?

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  4. Why did you use a US based report? It doesn’t recognize Canadian postal codes so it is useless, and a waste of time, and is poor reporting.

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  5. I paid cash for a Corolla 2005. 4000$, three years driving and still on the road, thriving.

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