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If you have your heart set on buying a brand new vehicle, it’s important to know that the car will lose thousands of dollars in value as soon as you drive it off the lot.
However, buying a new car isn’t always a bad idea — especially if you keep it for the long haul.
Read more: The true cost of owning a car is a lot more than you think!
Since new cars depreciate fast, Clark generally likes the idea of buying a car that’s two or three years old. However, as he mentioned on the radio show, if you buy a brand new vehicle and keep it for 10 years, you’re doing a good job for your wallet.
An analysis of over 14 million vehicles from iSeeCars.com found the average price difference between a new car and a one-year-old used car is 21%. But there were 10 models that had price differences of just 7% to 11%, well below that average.
“So for a few thousand dollars more, one can buy a new version of these models and get the peace of mind associated with a new car,” said Phong Ly, iSeeCars.com CEO.
Notice that the list below is dominated by pickup trucks and SUVs, which are in high demand.
Clark recently heard from a woman who was ready to trade in her 12-year-old car with 150,000 miles for something else. She was debating whether to buy a new vehicle and keep it for a decade — or get a slightly used car.
Clark’s advice? He told her that since she plans to drive her next vehicle for 10 years, she can go ahead and buy new if she doesn’t want to worry about a used car’s history.
With that said, there are some cars you never want to buy new. Read more about that here.
And if you’re not paying cash for the car, you’ll want to arrange financing with your credit union or bank before you head to the dealership. Only take dealer financing if it beats your other offers.
To get the best price possible, follow these ‘Clark Smart’ steps to buying a new car or buying a used car.
Read more: These are the most and least expensive cars to maintain
This post was last modified on March 22, 2017 4:25 pm
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