Some New Cars Now Cheaper Than Used Cars

New Vehicles Cost vs. Used Vehicle Cost


In tough economic times it makes sense to maximize every dollar. In terms of car buying, that suggests buying a clean used car instead of springing for the shiny new one. But is buying a used car always cheaper than buying a new vehicle? In most typical economic climates, the answer is a resounding "yes." However, the current economic climate is anything but typical. In fact, the deals on some new cars are so generous they actually make a new car less expensive than both a one-year-old used and certified pre-owned version of the same model.

To illustrate this point, Edmunds.com compared the vehicles' True Market Value® transaction prices and the interest payments typically made for each vehicle. Because used/certified pre-owned cars are generally financed at a higher rate than new cars, a shopper can actually save money by purchasing a new vehicle instead of a used version in some cases.

Since new vehicles have inherent advantages over used vehicles, we also looked at vehicles whose total payment costs for new and used were similar and have included them in our analysis. Below is a list of new vehicles that are either less expensive or nearly the same to buy when compared to their average one-year-old used counterparts:*

See New Vehicles Cost vs. CPO Vehicle Cost

New Vehicles Cost vs. Used Vehicle Cost

Make: A | C | F | H | L | M | N | R | T | V

Vehicle Typical Monthly
Payment New
Typical Monthly
Payment Used
Total Savings
Over Term
Acura TSX Sport Wagon Technology Package 4dr Wagon (2.4L 4cyl 5A) $580 $554 -$1,560
Chevrolet Silverado 2500HD Work Truck 2dr Regular Cab LB (6.0L 8cyl 6A) $457 $445 -$720
Chevrolet Silverado 3500HD Work Truck 4dr Crew Cab SB (6.0L 8cyl 6A) $553 $527 -$1,560
Ford Focus Electric 4dr Hatchback (electric DD) $502 $511 $540
Honda Accord LX 4dr Sedan (2.4L 4cyl 6M) $379 $363 -$960
Honda CR-V LX 4dr SUV AWD (2.4L 4cyl 5A) $402 $405 $180
Honda Pilot Touring w/Navigation and Rear Entertainment 4dr SU $664 $633 -$1,860
Hyundai Elantra SE 4dr Sedan (1.8L 4cyl 6M) $291 $279 -$720
Hyundai Elantra Coupe 2dr Coupe (2.0L 4cyl 6A) $333 $326 -$420
Hyundai Elantra GT 4dr Hatchback (2.0L 4cyl 6A) $326 $319 -$420
Hyundai Sonata GLS 4dr Sedan (2.4L 4cyl 6A) $342 $331 -$660
Lexus GX 460 4dr SUV 4WD (4.6L 8cyl 6A) $868 $829 -$2,340
Mitsubishi Lancer Sportback ES 4dr Hatchback (2.0L 4cyl CVT) $304 $299 -$300
Mitsubishi Outlander GT 4dr SUV AWD (3.0L 6cyl 6A) $450 $432 -$1,080
Nissan Frontier S 4dr King Cab 6.1 ft. SB (2.5L 4cyl 5M) $316 $304 -$720
Nissan Murano SL 4dr SUV AWD (3.5L 6cyl CVT) $590 $561 -$1,740
Nissan Quest SV 4dr Minivan (3.5L 6cyl CVT) $488 $469 -$1,140
Nissan Titan SV 4dr King Cab 4WD SB (5.6L 8cyl 5A) $583 $558 -$1,500
Ram 2500 Tradesman 4dr Crew Cab SB (5.7L 8cyl 6A) $515 $493 -$1,320
Ram 3500 Laramie 4dr Crew Cab 4WD LB (5.7L 8cyl 6A) $762 $727 -$2,100
Ram CV Tradesman 4dr Minivan (3.6L 6cyl 6A) $358 $351 -$420
Toyota 4Runner SR5 4dr SUV (4.0L 6cyl 5A) $532 $509 -$1,380
Toyota Avalon XLE Touring 4dr Sedan (3.5L 6cyl 6A) $550 $567 $1,020
Toyota Avalon Hybrid Limited 4dr Sedan (2.5L 4cyl gas/electric hybrid C $645 $666 $1,260
Toyota Camry SE 4dr Sedan (2.5L 4cyl 6A) $372 $371 -$60
Toyota Camry Hybrid LE 4dr Sedan (2.5L 4cyl gas/electric hybrid CVT) $421 $421 $0
Toyota Corolla LE 4dr Sedan (1.8L 4cyl CVT) $299 $288 -$660
Toyota Prius Three 4dr Hatchback (1.8L 4cyl gas/electric hybrid $416 $434 $1,080
Toyota Prius c Two 4dr Hatchback (1.5L 4cyl gas/electric hybrid C $333 $334 $60
Toyota Prius Plug-in 4dr Hatchback (1.8L 4cyl gas/electric hybrid CVT) $465 $499 $2,040
Toyota Prius v Three 4dr Wagon (1.8L 4cyl gas/electric hybrid CVT $444 $454 $600
Toyota RAV4 XLE 4dr SUV AWD (2.5L 4cyl 6A) $444 $433 -$660
Toyota RAV4 EV 4dr SUV (electric DD) $828 $818 -$600
Toyota Sienna XLE 8-Passenger 4dr Minivan (3.5L 6cyl 6A) $537 $538 $60
Toyota Tacoma PreRunner V6 4dr Double Cab 5.0 ft. SB (4.0L 6cyl $440 $420 -$1,200
Toyota Tundra Platinum FFV 4dr CrewMax 4WD SB (5.7L 8cyl 6A) $808 $770 -$2,280
Toyota Venza XLE 4dr Wagon AWD (3.5L 6cyl 6A) $560 $550 -$600
Volkswagen Beetle R-Line PZEV 2dr Hatchback (2.0L Turbo 4cyl 6AM) $440 $458 $1,080
Volkswagen Jetta 4dr Sedan (2.0L 4cyl 5M) $263 $250 -$780
Volkswagen Jetta GLI Autobahn PZEV 4dr Sedan w/Navigation (2.0L 4cyl Tu $488 $479 -$540
Volkswagen Tiguan SE 4dr SUV (2.0L 4cyl Turbo 6A) $455 $448 -$420

Below is a list of new vehicles that are either less expensive or nearly the same to buy when compared to their average one-year-old CPO counterparts:*

Make: A | C | F | H | J | L | M | N | R | S | T | V

Vehicle Typical Monthly
Payment New
Typical Monthly
Payment CPO
Total Savings
Over Term
Acura RDX Technology Package 4dr SUV AWD (3.5L 6cyl 6A) $654 $630 -$1,440
Acura TSX 4dr Sedan (2.4L 4cyl 5A) $510 $494 -$960
Acura TSX Sport Wagon Technology Package 4dr Wagon (2.4L 4cyl 5A) $580 $572 -$480
Audi allroad Premium quattro 4dr Wagon AWD (2.0L 4cyl Turbo 8A) $688 $656 -$1,920
Audi Q7 3.0T S line Prestige quattro 4dr SUV AWD (3.0L 6cy $1,039 $993 -$2,760
Chevrolet Silverado 2500HD Work Truck 2dr Regular Cab LB (6.0L 8cyl 6A) $457 $448 -$540
Chevrolet Silverado 3500HD Work Truck 4dr Crew Cab SB (6.0L 8cyl 6A) $553 $528 -$1,500
Ford Focus Electric 4dr Hatchback (electric DD) $502 $511 $540
Honda Accord Sport 4dr Sedan (2.4L 4cyl 6M) $412 $396 -$960
Honda CR-V LX 4dr SUV AWD (2.4L 4cyl 5A) $402 $412 $600
Honda Odyssey LX 4dr Minivan (3.5L 6cyl 6A) $484 $461 -$1,380
Honda Pilot Touring w/Navigation and Rear Entertainment 4dr SU $689 $662 -$1,620
Hyundai Accent GLS 4dr Sedan (1.6L 4cyl 6M) $260 $249 -$660
Hyundai Azera 4dr Sedan (3.3L 6cyl 6A) $520 $498 -$1,320
Hyundai Elantra SE 4dr Sedan (1.8L 4cyl 6A) $307 $304 -$180
Hyundai Elantra Coupe 2dr Coupe (2.0L 4cyl 6A) $333 $343 $600
Hyundai Elantra GT 4dr Hatchback (2.0L 4cyl 6A) $326 $337 $660
Hyundai Sonata GLS 4dr Sedan (2.4L 4cyl 6A) $342 $352 $600
Hyundai Sonata Hybrid Limited 4dr Sedan (2.4L 4cyl gas/electric hybrid 6 $523 $505 -$1,080
Hyundai Veloster 3dr Hatchback w/Black Interior (1.6L 4cyl 6M) $315 $301 -$840
Jeep Wrangler Sport 2dr SUV 4WD (3.6L 6cyl 6M) $402 $385 -$1,020
Lexus GX 460 4dr SUV 4WD (4.6L 8cyl 6A) $868 $843 -$1,500
Mazda Mazda2 Sport 4dr Hatchback (1.5L 4cyl 4A) $271 $263 -$480
Mazda Mazda3 i Sport 4dr Sedan (2.0L 4cyl 6M) $323 $308 -$900
Mazda Mazda5 Sport 4dr Minivan (2.5L 4cyl 5A) $356 $345 -$660
Mazda MX-5 Miata Sport 2dr Convertible (2.0L 4cyl 5M) $409 $390 -$1,140
Mitsubishi Lancer ES 4dr Sedan (2.0L 4cyl CVT) $296 $287 -$540
Mitsubishi Lancer Sportback ES 4dr Hatchback (2.0L 4cyl CVT) $304 $309 $300
Mitsubishi Outlander SE 4dr SUV (2.4L 4cyl CVT) $390 $376 -$840
Mitsubishi Outlander Sport ES 4dr SUV (2.0L 4cyl CVT) $340 $324 -$960
Nissan Armada Platinum 4dr SUV 4WD (5.6L 8cyl 5A) $859 $824 -$2,100
Nissan Frontier S 4dr King Cab 6.1 ft. SB (2.5L 4cyl 5M) $316 $310 -$360
Nissan Juke SV 4dr Hatchback (1.6L 4cyl Turbo CVT) $387 $370 -$1,020
Nissan Leaf S 4dr Hatchback (3-phase, 4-pole electric DD) $462 $443 -$1,140
Nissan Murano SL 4dr SUV AWD (3.5L 6cyl CVT) $590 $574 -$960
Nissan Quest SV 4dr Minivan (3.5L 6cyl CVT) $488 $478 -$600
Nissan Titan SV 4dr Crew Cab SB (5.6L 8cyl 5A) $578 $555 -$1,380
Ram 2500 Tradesman 4dr Crew Cab SB (5.7L 8cyl 6A) $515 $496 -$1,140
Ram 3500 Laramie 4dr Crew Cab 4WD LB (5.7L 8cyl 6A) $762 $725 -$2,220
Ram CV Tradesman 4dr Minivan (3.6L 6cyl 6A) $358 $359 $60
Subaru Forester 2.5i Premium PZEV 4dr SUV AWD (2.5L 4cyl 6M) $413 $401 -$720
Subaru Outback 2.5i Limited PZEV 4dr Wagon AWD (2.5L 4cyl CVT) $500 $479 -$1,260
Subaru XV Crosstrek Limited 4dr SUV AWD (2.0L 4cyl CVT) $428 $415 -$780
Toyota 4Runner SR5 4dr SUV (4.0L 6cyl 5A) $532 $512 -$1,200
Toyota Avalon XLE Touring 4dr Sedan (3.5L 6cyl 6A) $550 $567 $1,020
Toyota Avalon Hybrid Limited 4dr Sedan (2.5L 4cyl gas/electric hybrid C $645 $680 $2,100
Toyota Camry SE 4dr Sedan (2.5L 4cyl 6A) $372 $378 $360
Toyota Camry Hybrid LE 4dr Sedan (2.5L 4cyl gas/electric hybrid CVT) $421 $427 $360
Toyota Corolla L 4dr Sedan (1.8L 4cyl 6M) $276 $265 -$660
Toyota Prius Three 4dr Hatchback (1.8L 4cyl gas/electric hybrid $416 $440 $1,440
Toyota Prius c Two 4dr Hatchback (1.5L 4cyl gas/electric hybrid C $333 $342 $540
Toyota Prius Plug-in 4dr Hatchback (1.8L 4cyl gas/electric hybrid CVT) $465 $516 $3,060
Toyota Prius v Three 4dr Wagon (1.8L 4cyl gas/electric hybrid CVT $444 $459 $900
Toyota RAV4 XLE 4dr SUV AWD (2.5L 4cyl 6A) $444 $437 -$420
Toyota RAV4 EV 4dr SUV (electric DD) $828 $839 $660
Toyota Sienna XLE 8-Passenger 4dr Minivan (3.5L 6cyl 6A) $537 $535 -$120
Toyota Tundra Limited 4dr CrewMax 4WD SB (5.7L 8cyl 6A) $721 $689 -$1,920
Toyota Venza XLE 4dr Wagon AWD (3.5L 6cyl 6A) $560 $553 -$420
Volkswagen Beetle R-Line PZEV 2dr Hatchback (2.0L Turbo 4cyl 6AM) $440 $433 -$420

*Edmunds.com assumed a 60-month loan term, no down payment with a typical finance rate for new cars and a typical finance rate for one-year-old used cars. Edmunds.com added in destination charges and gas-guzzler taxes as appropriate. Of all available rebates, only national APR subvention, customer and dealer cash programs were applied; consumers should check the Edmunds.com Incentives and Rebates page to learn if they qualify for additional savings. When manufacturers offer special APR lower than market rate APR, we use the special APR in the calculation. If the vehicle has both customer cash and special APR that allows it to be eligible for this list, we will choose the one with a lower monthly payment to ensure the best program is utilized. Also, consumers should research state sales tax and registration fees to determine their total purchase costs.

Didn't see the car you wanted? Check back as this list will be updated monthly.

Comments

  • debtisbad debtisbad Posts:

    The idea that paying less usury (interest on non-productive money) is "cheaper" than paying more interest on non-productive money, is a pretty depressing way of putting a "positive spin" on our economic woes.

  • ellamiller ellamiller Posts:

    I love reading your posts. Keep up the good work! You recognize, many persons are searching around for this info, you can aid them greatly.

  • cliknclak2 cliknclak2 Posts:

    A one year old certified pre-owned car does not represent what most people buy when they buy a used car. Such a car is very near new and therefore offers little if any savings especially when financing is taken into account as you have done. Most people who buy used cars are buying them several years older with much greater depreciation in effect, often paying cash, both of which makes them much cheaper than new. What a misleading article, probably written buy somebody with close ties to a new car dealer or manufacturer.

  • jonboy470 jonboy470 Posts:

    Prior to the "carpocalypse" the Big Three had UAW contracts that required them to continue paying salary to furloughed workers. Cutting production, say, in half had minimal effect, other than to spread said labor costs across only half as many cars sold. Perversely, it was "cheaper" to build cars no one wanted than it was to not build them at all. Fleet sales were the primary means to move this inventory, but were undesirable, as the fleet cars all ended up on the used car market in short order, thus competing directly against the new cars the Big Three were simultaneously trying to sell at retail. The auto bailout allowed the Big Three to shred their UAW contracts, including the furlough provision, which also allowed them to slash their rental fleet sales operations and concentrate production on meeting retail demand. Rental agencies now must buy cars on terms much closer to retail sales; they are in turn induced to turn over their fleets at a lower rate. They need buy fewer cars to maintain a given fleet size, which means fewer late model used cars on the market. Supply and demand means those cars now cost more, and are less competitive against the Big Three's new cars. The effect ripples even to import brands (Honda, Toyota, etc.) who never engaged in large-scale fleet sales, as those models compete against models that were sold to fleets.

  • harrydevlin harrydevlin Posts:

    One error in the article is to imply that TMV represents the price that people pay for a vehicle. Between factory to buyer incentives, factory to dealer incentives that the dealers pass on to buyers, and just plain bargaining, TMV represents more of a maximum price, than an average or low price, for a new vehicle. It's always amusing to look at the newspaper and compare used fleet sale prices from car rental companies to new car prices from dealers, especially in July and August just before the model year change. Would anyone buy a 2012 Toyota, that's been a rental car, for $500 less than a brand new 2013 that has one year more of warranty and hasn't been driven by 100 different people during its rental period? Apparently yes! As another commenter pointed out, the new less expensive than used is only true for used cars that are only one or two years old. After that, there's sufficient depreciation that the used car is less expensive, though still not a good deal if you do the math of the expected service life versus the cost per year.

  • harrydevlin harrydevlin Posts:

    My sister-in-law recently purchased a new Camry to replace her 21 year old Camry. The one to two year old Camrys were more expensive than the new ones due to all the incentives ($500 loyalty discount) and discounting. The 0% financing was also a good deal even though she had to give up another incentive to get it. $20,000 put into a 2% five year CD, was a better way to go than paying cash and taking the incentive.

  • bestviolin bestviolin Posts:

    I just bought my first new car ever -- for under $15,000 . After 12 years of the same used car, the maintenance starting being the equivalent of a car payment every month. I started looking for something newer but used. When I did a search on auto trader for cars under 15K with under 15K miles I was surprised to find out the most of them were "new" to get something used, Id have to go with something 20,000 miles +. After several years of expensive repairs (AC, Transmission, tires, breaks, tune-up, belts, batteries) I didn't want to see a mechanic anytime soon. Finally settled on a new Ford Focus SE 2014. After some haggling I go it a brand new car with a 3 year warranty included for under 15k, out the door it was closer to 17K, but I had a $2000 trade in. I used to follow the used car is a better deal philosophy, but it seems that if you are willing to go with a lower priced model, they can be quite a deal. I also must add that I was surprised that the "standard" options on todays basic cars were as good or better then the options on my fully loaded 2002. Like Bluetooth and digital displays. Not to mention an array of upgraded safety features. If buying a luxury or high end car---Yes used is always better. But for basic good quality standard cars you cannot beat some of the new prices as well as the piece of mind that goes with it.

  • bethby bethby Posts:

    I think in general buying a new car is better. I mean used is fine if you're low on cash, but if you're looking for a long-term investment, new is always better depreciation be damned. Read more: http://blog.unhaggle.com/5-reasons-better-buy-new-car-used-one/#more-1950

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