If you’re in the market for a new car, you may be tempted to drive a brand-new one off the lot. After all, many manufacturers are already releasing their feature-packed 2017 models, and the weather hasn’t even turned cold yet.
But, before you do, consider this: A new study by iSeeCars.com, an automotive data and research company, found that buying a new car is not always going to get you the best bang for your buck. In fact, the company discovered that purchasing some cars that are just a year old can provide consumers with substantial savings.
“Most people know new cars depreciate the most in the first year and that different cars have different depreciation rates, but we wanted to determine which used cars experienced the largest price drops compared to their new models,” Phong Ly, the CEO of iSeeCars.com, said in a press release.
To establish the savings, iSeeCars.com analyzed the more than 14 million cars sold from August 1, 2015 and July 31, 2016, excluding models with fewer than 250 new and 250 used cars sold. The average asking prices of year-old cars were compared to those of new cars from the same model, according to the release, with the difference in price expressed as a percentage of the new model average price. This percentage was then compared to the overall percentage difference across all models.
Using this data, iSeeCars.com researchers found that the average price difference between a new car and a lightly used car was 21.2%, ranging from $6,099 to $19,966 in savings. (Note: For this study, a lightly used car is defined as a vehicle from the 2014-2015 model years with mileage within 20% of 13,476, the average annual miles traveled in the U.S., according to the Department of Transportation.)
But it isn’t all cars — iSeeCars.com established a dozen cars that offer the best value when purchased lightly used instead of brand new, with price differences between 31.2% and 34.6% — at least 1.5 times more than the overall average. Below are those 12 cars.
1. FIAT 500L
Price Difference: $8,096 less
Percentage Price Difference: -34.6%
2. Lincoln MKS
Price Difference: $16,039 less
Percentage Price Difference: -34.5%
3. Volvo S60
Price Difference: $14,204 less
Percentage Price Difference: -34.4%
4. Kia Cadenza
Price Difference: $12,940 less
Percentage Price Difference: -34.3%
5. Mercedes C250
Price Difference: $15,247 less
Percentage Price Difference: -34.3%
6. Nissan Maxima
Price Difference: $12,469 less
Percentage Price Difference: -34.0%
7. Lincoln MKS + MKZ Hybrid
Price Difference: $14,177 less
Percentage Price Difference: -33.8%
8. Jaguar XF
Price Difference: $19,966 less
Percentage Price Difference: -32.3%
9. FIAT 500
Price Difference: $11,106 less
Percentage Price Difference: -31.9%
10. Cadillac ATS
Price Difference: $6,099 less
Percentage Price Difference: -31.8%
11. Chrysler 300
Price Difference: $13,351 less
Percentage Price: -31.7%
12. Buick Regal
Price Difference: $11,525 less
Percentage Price Difference: -31.2%
If you’re considering purchasing a new car — whether it’s straight from the manufacturer or simply new to you — it’s a good idea to make checking your credit part of your shopping process. Knowing where your credit stands can help you get an idea of what terms and conditions you may qualify for with your auto loan. You can see two of your credit scores for free, updated every 14 days, on Credit.com.
Image: AdrianHancu
You Might Also Like
Find out if your rent and utility payments are reported on your c... Read More
April 11, 2023
Uncategorized
Becoming an authorized user is a common tip for individuals tryin... Read More
September 13, 2021
Uncategorized
Long-term unemployment can really hurt—and not just financially... Read More
August 4, 2021
Uncategorized