Buying a new car instead of buying a used one is almost justified, if you look closely at the numbers.
The average payment for a new car is now $712. This, of course, is due at least in part to the fact that the demand is greater than the supply. It’s not that Americans are buying fewer new cars than before, with sales peaking at 17.4 million in 2016 and hovering until the Covid pandemic hit. It’s that they can’t.
Chip shortages and chronic supply chain issues mean that when it comes to the desire to buy a new car post-pandemic, it’s about people’s willingness to buy what’s available , while possibly paying the asking price.
The average cost to buy a new car in May 2022 was $47,148, about the same price as a Kia Telluride SX with all-wheel drive and a tow package. Conversely, strong demand for new cars means the same for used cars.
You might think you’d get a better deal with a used car, but that’s probably not the case. Look for a used Kia Telluride and you’ll find that it always sells for more than the MSRP. This is the case for most models released just before 2020 or after. The Telluride, with its many accolades, is the main victim of demand.
But keep looking, and you’ll see that any redesigned Honda Civic, any Mazda CX-30, virtually any car launched this decade will demand more as a lightly used car. You may soon realize that it may make more sense to buy a new one without miles.
Don’t spend more than $47,000. I will be mad at you.
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