Decision Time: New vs. Used Car
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MORE: USED CAR BUYERS GUIDE 1997-2009
Washington DC March 4, 2009; The AIADA newsletter reported that according to CNN used cars are still a better buy over new, but with all the incentives on the table, the value gap is closing.
CNN says that used cars are a smart buy because of depreciation, which is greatest in the first year or two, which means someone else gets stuck with the biggest value-drop. And you aren't giving up very much in return - these days, cars last a lot longer, so a car with 20,000 or 30,000 miles can still have plenty of life.
But weak sales have led to heavy incentives on new cars. While a used car is still cheaper than a new one, in some cases the price difference will be surprisingly small.
"Certified pre-owned" cars are another option. CPOs are selected low-mileage used cars that have been inspected, refurbished as needed and certified as being in top-notch condition, according to criteria laid out by the car's original manufacturer.
"If you really want to make the most educated decision, you need to look at all three alternatives," said Jesse Toprak, an analyst with Edmunds.com.
Click here for some examples of new, used, and certified pre-owned costs for various cars.
