Kelly Blue Book has announced that in today’s market, new car deals are better for consumers than are used car deals!
KBB says that this relatively unusual state is due to two straight years of increasing used car prices brought about by the national Cash for Clunkers program and the natural disaster in Japan a couple of years back. Currently, the average new car cost is about 11.5% more than that of a similar one-year-old vehicle, a difference that does not make the used car all that attractive. What’s worse for the used car market is that the difference between new and one-year-old compacts is only five to seven percent and with hybrids and midsize and crossovers less than five percent.
KBB says that these differences vary depending upon the model in question. However, this certainly brings the old “new vs pre-owned” question back into vogue. New cars typically require better credit, and for that reason we typically recommend that our users who have less-than-stellar credit opt for a pre-owned vehicle. But if you’ve really been wanting a brand-new car, but have been reluctant because you knew it wasn’t the right financial choice, this might be the rationale you need!