The most common question that I get is “should I buy new or pre owned?” Though my responses have varied based on circumstances, new cars are becoming more attractive in today’s market.
The new car dealers are able to offer factory discounts, sometimes referred to as rebates or incentives, which can make for attractive pricing. When those discounts are combined with the low interest rates offered by the manufacturer’s these days, it’s not uncommon for the monthly payments on a new car to be less than the monthly payments on a pre owned car. If your purchasing decision is based soley on monthly payments, buying new may be best for you.READ MORE: Trump says he took the Fifth in questioning in New York Attorney General fraud investigation
Alternatively, if the “bottom line price” is your motivation, a pre-owned vehicle may be right for you. I underscore “may”, because industry trends suggest that used car pricing is tracking up this spring. According to Black Book, the industry standard in used car pricing, there’s been a “tremendous amount of activity within the wholesale market.” Translation: dealers are paying more so the consumer will pay more. However, when new car depreciation is factored in, there’s ultimately an inate savings that can not be ignored.READ MORE: Clean air advocates urge Georgia school systems to apply for school bus rebate funding
All things considered, unless you’re considering a three or four year old model, which should be significantly less expensive that it’s new counterpart, a new car may be more economical in terms of monthly payments.
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