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With used car prices soaring, buying a new car could be a better deal

Posted at 5:49 AM, May 03, 2021
and last updated 2021-05-03 06:35:20-04

(WXYZ) — Have you seen how expensive used cars are getting this year? It's nearing the point where deals on some new cars are so good it might be worth buying new instead of used.

Conventional wisdom said a new car's value plunges the minute you take it home, but Karl Brauer of ISeeCar.som said that's not the case in 2021.

"We've all heard this, you lose 20 to 30 percent of the car’s value when you drive it off the lot. You almost always want to buy a used car when you are going for pure value," he said.

But with used car prices at all-time highs, he said some used cars are so expensive that the new version is a better deal.

"If it’s 2% cheaper to buy a one-year-old car, why not just buy a one-year-old one?" he said.

The vehicles where new can be a smarter deal include:

  • Jeep Wrangler
  • Toyota Tacoma
  • Toyota 4-Runner
  • Nissan Frontier
  • Honda Pilot

In most of those cases, you can get the car for just $2,800 more than a year-old version, and you get the full warranty and no spilled French fries.

But, some cars still plunge in value quickly. The survey said many luxury cars still drop 30% after a year.

So, if you're looking to buy a Cadillac XTS or CTS, Mercedes E-Class or Lincoln MKZ, you're better off buying used.

While used cars will be cheaper, if there's not much difference, new could be a better deal.