It’s no secret that buying used can save you money, but is that still true now that used car prices are up?
iSeeCars’ latest study aimed to find out and the answer is unsurprising yes. However, your saving will vary greatly depending on what model you’re in the market for.
According to the study, the average one-year old vehicle costs 17% less than a new one. However, the price difference varies from as little as a 2.1% difference to as much as a 36.4% difference.
Also Read: These Are The Most Popular Used Vehicles In America
The Tesla Model 3 had the smallest price difference as buying a one-year old model will only save customers $923, which is a difference of 2.1%. Following closely behind was the Toyota Tacoma, which is 4.2% cheaper used for a savings of $1,557. Rounding out the top five are the Kia Telluride ($2,456), Ford Ranger ($2,416) and Jeep Gladiator ($3,373). These relatively modest savings mean customers are likely better off buying new.
At the opposite end of the spectrum, some vehicles depreciate like a rock and that means buying used can save you over $20,000. That’s the case with the BMW 5-Series which is 36.4% cheaper used for a saving of $24,207. The Hyundai Sonata is also a one-year old bargain as prices drop 36.1% for a savings of $9,898.
Other models with big savings after a year are the Infiniti Q50 ($16,322), Mitsubishi Eclipse Cross ($8,041) and Ford Mustang Convertible ($13,422). Unsurprisingly, a number of vehicles on the ‘best to buy used list’ are sedans and luxury cars. Sedans have fallen out of favor with crossover obsessed consumers, while luxury vehicles are ripe for depreciation.
In the end, it really comes down to what you want and how flexible you can be. iSeeCars Executive Analyst Karl Brauer also noted, “While buying used typically provides upfront cost savings compared to buying new, sometimes used vehicles only offer minimal savings, especially when finance rates and rebates on new models are taken into account.”
