Bruce Nunnally Posted July 4, 2010 Report Share Posted July 4, 2010 Used-car prices in the U.S. are soaring, creating a wacky situation for many models in which buying new costs about the same or even cheaper than buying used.... "The lesson is definitely do research," said Jessica Caldwell, senior analyst at Edmunds.com. "Just because you want to buy a car and don't want to pay that much, don't necessarily assume that used is cheaper. You have to really do the math." Edmunds' study identified 41 vehicle models that were cheaper to buy new compared with a year-old vehicle, if both were financed for five years. It found 73 more models that cost about the same new or used. Examples include a premium version of the Audi S4, which was $3,780 cheaper new over the term of the loan; Cadillac CTS, which was $3,180 cheaper, and Volkswagen Beetle, $3,000 cheaper. Read More: http://www.freep.com/article/20100704/BUSINESS01/7040423/1322/Many-car-prices-similar-for-new-or-used A large factor in their calculation is if you can get 0% financing on the new car and not on a used car, then over the life of a 5 year loan the difference in the financing cost can overcome the lower price of the used car. Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
joeb Posted July 5, 2010 Report Share Posted July 5, 2010 we leased a car and i asked the salesman to add up the upfront cost, tax, title, license and all lease payments for total out of pocket for life of lease and he looked at me like i was crazy? why would i want that kind of information? car X was 9800. car Y was 10800. how else would i compare 2 cars? 6 months ago an accord was 289/month. last week it was 219. wow. never seen an accord that low. yes, its no caddy but the wife drives it. Link to comment Share on other sites More sharing options...
Bruce Nunnally Posted July 5, 2010 Author Report Share Posted July 5, 2010 Leases are sold on 'low low monthly payments' and not on your sensible request for total out of pocket across the life of the lease. One way to sell more cars is to subsidize leases. Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
joeb Posted July 6, 2010 Report Share Posted July 6, 2010 you should have seen the pained look on the salesman face as i made him add up the total costs. he clearly was not enjoying it. accords have always been 200-220/month with 3300 down. last 5yrs or so. last week it was 219 with nothing down. same term. same miles. of course its a stripper. a V6 with leather is 340/month. Link to comment Share on other sites More sharing options...
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