For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper.
Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying website. A new 2009 model cost $80 less.
It’s simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.
“The intuitive logic has been that a used car buy is a better buy,” said Edmunds CEO Jeremy Anwyl. “But consumers need to check reality. It’s very contradictory.”
Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.
Source: USAToday
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