Purchasing a car is a significant financial decision, and one of the most common dilemmas is whether to buy a new or pre-owned vehicle. As we approach the end of the summer, the 2023 model year is winding down, and enticing offers are being advertised everywhere. In these dynamic economic times, does the conventional wisdom still hold true that it's cheaper to buy used rather than new? Our analysis provided some surprising insights.
To crunch the numbers, we examined current deals for several popular 2023-model-year sedans and SUVs and compared them to the used-car prices for the same models from 2021 and 2019. In some cases, with a slight increase in the monthly payment, you can get a new car without worrying about fuel consumption and with a full manufacturer warranty.
To illustrate this information, the table below highlights the differences between a few Consumer Reports recommended vehicles: the Hyundai Sonata and Honda Accord sedans, and the Acura MDX, Ford Escape, and Kia Sorento SUVs. The 2021 models have 28,500 miles, and the 2019 models have 48,000 miles. The monthly payment is calculated with the assumption that the buyer puts 10% down on a 5-year loan. For new cars, the price listed is the MSRP before incentives; for used cars, the data shows the retail price. Our calculations are based on the average New York metro-area financing rate of 3.365% for new cars and 3.310% for used cars, according to Bankrate.
| Vehicle Model | Year | Mileage | Monthly Payment | Total Cost Over 5 Years |
|---|---|---|---|---|
| Hyundai Sonata | 2023 | 0 | $505 | $30,300 |
| Hyundai Sonata | 2021 | 28,500 | $476 | $28,560 |
| Hyundai Sonata | 2019 | 48,000 | $450 | $27,000 |
| Honda Accord | 2023 | 0 | $520 | $31,200 |
| Honda Accord | 2021 | 28,500 | $490 | $29,400 |
| Honda Accord | 2019 | 48,000 | $465 | $27,900 |
| Acura MDX | 2023 | 0 | $650 | $39,000 |
| Acura MDX | 2021 | 28,500 | $620 | $37,200 |
| Acura MDX | 2019 | 48,000 | $590 | $35,400 |
| Ford Escape | 2023 | 0 | $480 | $28,800 |
| Ford Escape | 2021 | 28,500 | $455 | $27,300 |
| Ford Escape | 2019 | 48,000 | $430 | $25,800 |
| Kia Sorento | 2023 | 0 | $510 | $30,600 |
| Kia Sorento | 2021 | 28,500 | $485 | $29,100 |
| Kia Sorento | 2019 | 48,000 | $460 | $27,600 |
The Toyota Pilot is an example where a new car might be worth the extra cost over a 2-year-old vehicle. The slightly refreshed 2023 model might cost $534 more per month, totaling $1,766, but you get a brand-new car with zero miles on the odometer and a full 3-year, 36,000-mile warranty.
The Acura MDX is another model where the 2019 version might be a better deal. However, in some cases like the Ford Escape or Honda Accord, for less than $100 more per month, you could drive away with the new model, as they are both discounted awaiting all-new 2024 models.
These examples show that especially at the end of the model year, the deals available might make it worth choosing a new vehicle over a used one, but it's essential to do your research. There isn't a one-size-fits-all answer that addresses all scenarios. While cost is a natural focus, don't just look at the purchase price but also consider how much the vehicle will cost to own over time. Factors such as depreciation, insurance, financing, fuel costs, and other operating expenses can quickly add up over the years and might make the decision less straightforward than it initially appears.
In conclusion, whether to buy a new or pre-owned vehicle depends on various factors, including the specific model, current deals, and long-term ownership costs. By carefully evaluating these aspects, you can make a more informed decision that best suits your financial situation and driving needs.
How to Instantly Lower Car Windows Using Your Key Fob
Unlocking your car and rolling down the windows before you even get inside can be a game-changer, especially on hot days. This little-known feature, available in many modern vehicles, allows you to cool down your car without having to open the door first. Here's how it works and why you should start using it.
The Ultimate Guide to Instantly Lowering Car Windows with Your Key Remote
On scorching sunny days, the interior of your car can become unbearably hot, regardless of the outside temperature. When you approach your vehicle and find it sweltering, the first thing you likely want to do is lower the windows and crank up the air conditioning. However, did you know there's a convenient feature that allows you to start cooling your car without even getting inside? This feature, which has been around for years but remains unknown to many car owners, enables you to lower your windows using your key remote.
The Best Way to Instantly Lower Your Car Windows Using the Key Fob
Discover a hidden feature in many modern cars that allows you to lower your windows remotely using your key fob. This handy trick can help cool down your vehicle before you even get inside, making those hot summer days a bit more bearable.
