Before going anywhere near a lot would-be buyers should check their vehicle choice using three criteria. Test driving is an important part of the car-shopping process, but don’t do that just yet. Your first step is to find the car’s resale value. The second step — if you’re shopping the used-car market– is to check out whether you could get a new model of the used car you’re considering. The third step is to look at whether a competing vehicle — possibly a “dark horse” choice — might be an even better car than your current first choice.
Let’s look at resale value first. Most of us know that all cars lose value as soon as they roll off the dealers‘ lots. But here’s a little secret of car buying: Not all cars depreciate at the same rate. For example, the 2010 Chrysler Sebring Limited depreciates more than $7,000 in the first year. But in that same year, the 2010 Honda Accord, a similarly priced car, depreciates just $4,000. Basically, the Chrysler owner will spend $3,000 more than the Honda owner over time. The resale value of all new cars is listed in our True Cost to Own data.
The new-versus-used step is next. In today’s topsy-turvy marketplace, many used vehicles are actually more expensive than their new counterparts. Here is a complete list of new cars that currently are cheaper than used cars. This counterintuitive situation is caused by the low depreciation of some cars and the high incentives currently available.
Finally, it pays to look at competing models to make sure you’re getting the most bang for your car-shopping buck. Certain brands garner a premium, but there are plenty of “dark horse” cars worthy of consideration. And you can get them for less than your (possibly impulsive) first choice.
Press release courtesy of Blogs.Edmunds.com
