Some used cars going for more than new ones
The lagging sales of new vehicles has been well documented, forcing retailers and manufacturers to offer some pretty amazing deals just to move their metal. Sometimes, the price of a brand new car is so good that it doesn't make sense to purchase a used vehicle.
In fact, some new cars are actually priced lower than their previously-loved siblings. One specific example is the 2009 Honda Accord, which, according to Edmunds, is selling for about $80 less than the average asking price for a certified 2008 model. Of course, Hondas are known for holding their value, so better used vehicle deals may be found elsewhere.
Further, interest rates on loans for new cars are generally lower than for used cars, which means the monthly payments may actually be lower for a zero-mile vehicle that costs the same as one that's been around the block a few times. Automakers hope these facts help spur a recovery in new car sales, and for their sake, so do we.
[Source: Detroit Free Press | Photo: David Gallagher]
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Reader Comments (Page 1 of 1)
Dana 5:08PM (3/20/2009)
I've noticed this phenomena too, and it translated down to beaters going for twice what they could have hoped two years ago. Buyers are just obsessed with used cars now. Too bad people are still too lazy to shop around and compare.
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Ligor 5:09PM (3/20/2009)
right now for those that are actually buying cars, it's like a flea market out there
deals so good buying used makes no sense, especially if the used car is within a few thousand of a new one
now if you're buying 3 yr old cars, than the price to a new one is still steep
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potatoeMAN 5:22PM (3/20/2009)
The Prius experienced a similar phenomenon last summer. I was in the market for a new Prius and a Toyota dealer was more than happy to add me to the waiting list but couldn't sell me one immediately. The same dealer had a CPO year-old Prius for he was selling for $3000 above the 2009's MSRP.
The price for a used Prius was higher than a new one because the used one was available immediately.
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Michael 5:27PM (3/20/2009)
I have been seeing thi phenomemon and have even posted reagarding it recently on other forums. It's my job to know what's going on and here are several examples where car shoppers can save IF credit is NOT a major factor:
Honda:
http://www.viphonda.com/Specials-New.aspx
Lexus:
http://www.preferredluxury.com/leasespecials.asp
Jaguar:
http://www.landrover4x4.com/index.htm
The article mentioned Honda, but in fact Lexus is a more extreme example. The Jaguar one you have to click through to Jaguar, which I think may not look as good in general because Jaguars have lower resuduals in general. Perhaps the new Jaguar XF will change that, I like that car a lot. But back to the point, it is a buyers market, but at the same time a lot of people are having greater trouble getting credit and therefore they, too, have to look for cheaper cars than they normally would.
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MikeofLA 5:27PM (3/20/2009)
I was at a BMW Certified dealership here in LA and across the street they have their new cars... They had a 135i with 13,000 miles for $42,000, the exact same spec'ed car across the street was ~$38,000. I laughed RIGHT in the guys face and walked across the street...
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Eh 5:31PM (3/20/2009)
facepalm
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Tim 5:40PM (3/20/2009)
This will continue to happen over the next year as the number of reliable used cars continue to go down. We should get back to a sales rate of just under 10 million units per year by fall due to people replacing cars that break down.
I think we have witnessed a permanent shift from the high end to the middle and low end of the market. The fastest growing market will be subcompact and compact cars under 20k. I don't think we will see 15 million units again for at least a decade.
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Hamhock 5:56PM (3/20/2009)
I remember seeing this in the early 90s with Civics - a brand new Civic LX for example was MSRP of 14k or so but you would see them used w/ 10k miles asking $15k.
I think these deals were targeted for people with bad credit. With the number of people who have been walking away from homes recently I can see how this might be resurfacing.
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Hamhock 5:59PM (3/20/2009)
It seems to me that the only # many customers care about, particularly at BMW dealerships, is what the monthly payment works out to be....every aspect of the deal could completely suck but if they can "afford the payment" then they will do the deal. Same has been true in the housing market, it seems...
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Tony 9:54PM (3/20/2009)
Up here in Canada you can pick up a new Montana SV6 for 15,995, or an Uplander for 1000.00 less. A Ford Ranger for 11,888.00 up to 15,888.00 for the 4x4. The used market has not caught up with a 3 year old versions of the same going for only a couple of thousand less.
This is going to devastate the value of the domestic automobile in the eyes of the car buyer, especially the people that trade every three or five years. These are the car buyers that GM, Ford and Chrysler need to cultivate most. Toyota and especially Honda and to a lesser extent Nissan and Mazda have it made. They attract the long term buyer for their cars dependability and the short term buyer for their brands resale value. Until the domestics change this perception you can sink all the money you want into them and they still will not succeed.
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Tony 10:06PM (3/20/2009)
Just to add to my previous message. In 2003 I purchased a Chevrolet (Suzuki) Tracker for $25,500.00 all in. At the same time I offered my wife a choice of the Tracker and a Chevrolet minivan ( the model before the Uplander). The minivan was $30,000.00 all in. I thank God we bought the Tracker as it has been trouble free (in the shop once for a 4WD actuator motor warranty repair) and has retained it's value far better than the minivan. My sister in law is pissed at having paid $35,000.00 for a Montana SV6 less than two years ago knowing that a new van at $15,995.00 is going to decimate the resale value of her lemon. Her van was delivered with a terminal alignment problem which can't be fixed and GM refuses to try. "They all do that"
Conundrum 11:20PM (3/20/2009)
Lemmings have so much confidence in Honda that used Accords are now worth more than new ones?
I guess this means that a 2009 Accord can only appreciate in value when driven off the lot.
As long as Consumer Reports says that it should work this way, there will be a certain number of people standing in line for the oportunity to buy a used car for more than a new one.
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A-style 1:54AM (3/21/2009)
Long live the lemmings so I can sell my used car Accords for little loss.
tankd0g 1:10AM (3/21/2009)
This story is a bit misleading. It's not like there's used cars on the same lot going for more money than the new car right next to it. Car prices vary pretty widely by region. Used cars in a high demand region are going for more than new ones in a low demand area, this isn't that unusual.
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