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Cars that are more expensive used than new
There are some cases where buying a late-model used car will cost more than a new one fresh off the lot. Here are 10 examples.
The economy shows no sign of picking up anytime soon. Still, life goes on. Bills need to be paid, groceries need to be purchased. and worn out but necessary possessions need to be replaced. Sometimes the replacement has little impact on the wallet, but then there are purchases that can’t be put off — whether you can afford them or not.
mORE AT CNBC.COM
For many, a car is such a necessity. Cars don’t take the economy into consideration when they break down, or when they’re so worn out there’s little choice but to replace them. For cash-strapped motorists, making a replacement car affordable often means buying previously owned cars. Generally, used cars cost less than new ones.
There are, however, some cases where buying a late-model used car will cost more than a new one fresh off the lot. After all, new car dealers have to unload inventory somehow, and a little competitive pricing never hurts.
The automotive information website Edmunds.com compared the true market value of new cars with their one-year-old used and certified pre-owned counterparts (this pricing system is what a car sells for in a particular U.S. region based on actual sales, not asking price). Based on those figures, and assuming a five-year loan term, CNBC.com determined which cars are less expensive to buy new.
What cars are cheaper to buy new than used? See below to find out.
Mazda CX-7i Sport 4-Door SUV (2.5L 4cyl 5A)
Typical Monthly Payment New: $374
Typical Monthly Payment Certified Pre-Owned: $378
Total Savings Over Term: $240
The Mazda CX-7 may not be the most practical car on the road but it looks good and offers the driver an exciting ride. It also has generous passenger and cargo space. The downside is the fuel economy, which at 20 miles per gallon in the city and 28 miles per gallon on the highway is the worst in its class. Better, perhaps, to focus on its braking and handling, both of which live up to Mazda’s solid reputation.
The typical monthly payment for a certified pre-owned model is $378, as opposed to $374 for a new one. This brings the total savings on a new model to $240.
Dodge Dakota ST 4-Door Extended Cab SB (3.7L 6cyl 4A)
Typical Monthly Payment New: $321
Typical Monthly Payment Used: $326
Total Savings Over Term: $300
The Dodge Dakota is a pickup truck for people who actually need a pickup truck. If your most strenuous transportation duty involves bringing groceries home, then the Dakota is probably not for you. On the other hand, if you’re hauling construction equipment, lumber or heavy machinery, this midsized pickup is ideal.
The typical monthly payment on the truck is $321 new and $326 used. This discrepancy of five dollars a month won’t even buy two gallons of gas, but in five years it will add up to a savings of $300 for new truck buyers.
Mazda MAZDA3 i Touring 4-Door Sedan (2.0L 4cyl 5A)
Typical Monthly Payment New: $306
Typical Monthly Payment Certified Pre-Owned: $311
Total Savings Over Term: $300
The Mazda 3 has seen some changes, the least popular of which is the change to its “face.” The front of the car now seems to be smiling, a change to its look that qualifies as a true “What Were They Thinking?” moment upon its introduction. What didn’t change about the car is how it drives, and on that score it receives enthusiastic reviews.
The car is reasonably priced, which is reflected in its typical monthly payment of $311 for a certified pre-owned model and $306 for a new model. Buying the car new saves $300 over a 60-month payment period.
Mitsubishi Outlander GT 4-Door SUV AWD (3.0L 6cyl 6A)
Typical Monthly Payment New: $464
Typical Monthly Payment Used: $470
Total Savings Over Term: $360
The Mitsubishi Outlander has received a few minor upgrades — emphasis on “minor.” It has a better fuel economy compared to previous models, but not by much. Improvements to its navigation and voice-activation systems are also trifling, but ultimately the vehicle remains a reasonable purchase for those looking for a crossover vehicle.
The Outlander’s typical monthly payment of $470 for a used model is six dollars higher than the $464 payment for a new one. People who buy one used will pay $360 more over a 60-month payment period than those who buy new.
