Buying A Used Car? A New One May Actually Cost You Less

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 Web site. 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.

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SHOWTIME - 3/23/2009 9:57:53 AM

+2 Boost

That's because some dealerships are smoking a lot of crack!

0to60 - 3/23/2009 10:04:24 AM

+1 Boost

Certified used cars with low mileage are frequently considered to be better (to dealers) than new ones as they offer a longer warranty.

cococo - 3/23/2009 11:33:00 AM

+1 Boost

Long before this economic mess got so bad, my friend got a new Versa. She was going to get a used car, but new was cheaper. Of course, she ended up with a Versa, but still...

JRobUSC - 3/23/2009 12:30:29 PM

+1 Boost

it's not always just about sale prices. That Certified 2008 has more warranty that a new 2009, so someone who drives a lot of miles/yr or plans on keeping the car for awhile could still be getting a better buy on the 2008.

SmokeEm - 3/23/2009 5:20:48 PM

+2 Boost

Yes, the certified car has a much better warranty, that is why it costs more.

But, most dealers will give you a better interest rate, financing a new car, rather than a used one. That is another reason why it makes sense for some people to buy new, instead of used, if they are going for long term financing.