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Posted: 6:00 a.m. Wednesday, May 22, 2013
By Clark Howard
After some unprecedented market conditions, buying a used car instead of a new one is again becoming the Clark Smart move it always used to be.
Almost three years ago, for the first time in 26 years on air, I started recommending new cars over used cars when people would call me to ask what they should buy. That was such a shocker to a lot of listeners.
But in the aftermath of the financial crisis, the car market dried up, leases disappeared, and Cash for Clunkers made the used market extremely short of vehicles. It got to the unprecedented point that you could buy a brand new car for less than a 1 to 3 year old car!
That is no longer the case right now as new auto sales have really heated up over the last year. People who come in to buy a new vehicle often trade in a used one. So the used vehicle market is getting well supplied again.
In fact, USA Today reports the average price of a 4-year-old used minivan or a crossover is down 10% over the last year. But that's the key -- you've got to look at those particular vehicles right around 4 model years old.
So we're back to where we were with some used cars being a deal again. Next year will be even better for used cars as the new car market stays robust with cheap financing.
Just remember any time you buy a used car, you must have it inspected by an independent diagnostic mechanice of your choosing as a condition of purchase.
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