Forget gas prices. Hit used-car sweet spot
If you’re in the market for a new car, stop fixating on gas prices and buy a lightly used car. You’ll save literally thousands of dollars.
That’s the advice of a new study by Consumer Reports.
“Late-model used cars are in the sweet spot of auto deals,” CR says. On average, consumers save 32 percent in the first five years by buying a three-year-old car. With a one or two-year-old car, they can save 19 and 27 percent, respectively.
EXAMPLES
- Buying a 2005 Toyota Camry with a V6 engine could save consumers $13,000 over five years compared with buying a new 2008 version. At $4 per gallon, drivers could pay for all their gas and still be $2,500 ahead.
- Driving a 2005 Ford Focus can save more than $8,000 over the first five years, compared with buying the new Focus.
- With values for used SUVs plummeting, drivers could save $25,500 over five years by buying a three-year-old Chevrolet Tahoe instead of a new one.
“A reliable late-model used car can be one of the best values out there when buying a car,” Rik Paul, CR automotive editor said in a new release. “Savvy shoppers can also get a more upscale model with more features for the same owner cost as a less expensive new car.”
NOT SOMEONE ELSE’S PROBLEMS
Many people shy away from buying a used car because they’re afraid of buying someone else’s problems. Yet CR’s reliability data show that cars, overall, are much more reliable than they used to be. Rust and exhaust-system problems, once common in older cars, are no longer of major concern. And reliable late-model vehicles usually have few problems overall.
HOWEVER…
CR found says that because some popular models, such as the Mini Cooper and Toyota Prius, don’t depreciate much, buying a used version of those models results in modest savings.
The full report is available in the October issue of Consumer Reports and online now at www.ConsumerReports.org.
