28 June 2022 6:02

New car vs used: how to compare value?

Quick to depreciate. New cars depreciate more quickly than their used counterparts. A vehicle loses the most value in the first few years of ownership—and a huge chunk of that in its first few seconds off the lot. By some estimates, the instant loss can be 20% of the car’s value.

How much value do you lose on the purchase of a new automobile?

Depreciation begins as soon as you drive off the lot. Your car’s value decreases around 20% to 30% by the end of the first year. From years two to six, depreciation ranges from 15% to 18% per year, according to recent data from Black Book, which tracks used-car pricing.

Which car value estimator is most accurate?

1. Kelley Blue Book. Whenever you’re looking to value your used car, Kelley Blue Book is the place to start. KBB has been valuing cars for the last nine decades and has an enormous amount of data to figure out the most accurate value of your used car.

What is the main difference between a new car versus a used car?

Advanced technology: New features for comfort, performance and safety are introduced in new cars every year. You’ll need to wait several years to get them in used cars. Peace of mind: A new car will likely be more reliable than a used one, even though pre-owned cars are much more dependable than in the past.

How do you determine the best price for a car?

New Car Price Guide: How To Get The Best Deal

  1. Check the Sticker. …
  2. Find Average Pricing Information. …
  3. Use CarsDirect. …
  4. Try Other Websites. …
  5. Look in the Paper. …
  6. Compare Prices Online vs. …
  7. The Basics of New Car Prices. …
  8. Hidden Dealer Discounts.

Why do new cars lose so much value?

Cars, as well as any other piece of equipment used, depreciate because they’re a resource that loses its value through gradual wear and tear. The more mileage your car racks up, the higher the probability of you having to pay to fix or maintain something.

What are two advantages with buying a new car?

While buying an older car or leasing might cost less upfront, there are many excellent benefits to purchasing a new vehicle.

  • You Know Its History. …
  • It Has the Latest Tech Features. …
  • You Can Customize a New Car. …
  • New Cars Are Safer. …
  • Better Fuel Efficiency. …
  • Increased Durability. …
  • Better Warranty Plans. …
  • New Car Financing.

Is Kelley Blue Book or NADA more accurate?

Also, NADA lists relatively higher prices, with the assumption that all vehicles are in great condition. For this reason, some believe that Kelley Blue Book is the more accurate guide between the two. On the other hand, some dealers see KBB prices as a bit overinflated, leading them to rely more on the NADA guidebook.

Is KBB 2021 accurate?

They also derive sale prices from major weekly auto auctions. By having such a broad band of information to pull from, KBB has indeed positioned itself as the most accurate and authoritative evaluation price guide whose numbers compare favorably with the real world.

Is Kelley Blue Book or Edmunds more accurate?

Edmunds: This website offers an appraisal engine that includes five car condition categories compared with KBB’s four. This can be helpful—or generate confusion—depending on how realistic you are about your car’s condition. Many experts believe Edmunds’ values are more accurate than KBB’s.

How much off MSRP Can I negotiate?

Focus any negotiation on that dealer cost. For an average car, 2% above the dealer’s invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman

  • “I really love this car” …
  • “I don’t know that much about cars” …
  • “My trade-in is outside” …
  • “I don’t want to get taken to the cleaners” …
  • “My credit isn’t that good” …
  • “I’m paying cash” …
  • “I need to buy a car today” …
  • “I need a monthly payment under $350”

What is dealer markup on new cars?

According to the website iSeeCars, the average markup fee is $3,753, or 9.9% over MSRP. In the most extreme case, Jeep Wrangler buyers are reportedly paying as much as a 26.7% markup over MSRP, or $8,925 in the case of the 2-door SUV. A dealer markup shouldn’t be confused with the dealer’s average profit on a vehicle.

What car loses value the fastest?

Cars Under $25K that Depreciate the Fastest
The top spot belongs to the Mitsubishi Mirage, which loses an average of 57.8% of its value over five years, amounting to around $9,300 in value. The second and third are the Chevrolet Sonic and Volkswagen Jetta, both with a five-year average depreciation rate of 56.5%.

What is the best age to buy a used car?

All in all, the best age to buy a used car is around the 5-year mark, as this minimizes depreciation and maximises reliability for the price you’ll pay, meaning you’re less likely to have any problems or need to pay any more money for later on which is a common problem with really cheap or much older vehicles.

At what mileage do cars lose value?

Edmunds’ analysis reveals that vehicle values decline only incrementally between 100,000 and 150,000 miles, and the rate of depreciation is similar to the decline that occurs between 50,000 and 100,000 miles. “After about the first 40,000 miles, vehicles depreciate at a slow and steady pace.

At what mileage is it best to trade in a car?

30,000 To 40,000 miles
The depreciation of your vehicle will generally begin to accelerate faster after this milestone, so the closer your car is to this mileage, the better your trade-in will likely be.

What matters more age or mileage?

Even when mileage is low, the older a car gets, the less reliable it becomes. Modern cars are much more reliable, even as they age. Five-year-old cars record what is considered a major problem every three years, while 10-year-old cars are more likely to face a problem every 18 to 20 months.

What color car hides scratches best?

white

The best colour for hiding minor dents and scratches is white. The reason for this is because its bright colour helps minimize the appearance of scratches, especially when it’s a bright day. While white is the best colour, you won’t go wrong with other lighter colours, such as silver grey.

What color car looks cleanest?

Beige, light blue, light gray, and silver are the best car color choices for those who want to keep their vehicles clean. In addition, white paint can hide dust and debris well.

What is the most luxurious car color?

While gold far outranks silver in terms of price per troy ounce on the precious metals market, when it comes to luxury car colors, silver reigns supreme. While gold far outranks silver in terms of price per troy ounce on the precious metals market, when it comes to luxury car colors, silver reigns supreme.

What color car is considered the safest?

White

White. We’ve referenced the safest color car on the road. That color is white. White cars are 12 percent less likely to be involved in an accident than black cars at any time of the day under any conditions.

What cars are hardest to steal?

10 cars that are hardest to steal

  • Jaguar XF. …
  • Nissan Leaf. …
  • Hyundai Tucson. …
  • Audi A4. …
  • Land Rover Discovery. …
  • Lexus HS 250h. …
  • Tesla Model X. …
  • Mercedes Benz GL 550 by TAC. The Mercedes Benz GL 550 by the Texas Armoring Corporation (TAC) has a (literal) bulletproof exterior so you won’t have to worry about gun-toting thieves.

What color car gets stolen the most?

The most common color of cars stolen is silver.