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That is one reason, but there are many. * You get to option the car with exactly the features/colors you want. * People will pay a premium for something brand
by dntrkv 4y ago
That is one reason, but there are many.
* You get to option the car with exactly the features/colors you want.
* People will pay a premium for something brand new.
* Financing for used cars usually carries a slightly higher interest rate.
* The actual cost at the dealership can vary significantly depending on the make/model/dealership
- notch656a 4y agoDuring beginning of COVID I drove a Tacoma off the lot for ~29k out the door and at the end of COVID I had several offers to buy it from me used with over 10k miles on it for anywhere from $30-31.5k. At that time you could still buy it new for ~29-30k. In fact the only reason why I bought new in the first place was because even a 10 year old tacoma is worth the better part of a new one. Guess it depends on your market but the premium for new looks pretty tiny or negative to me.
- dizzant 4y agoI don’t understand the downvotes. Your conclusion is wrong but you make a good contribution. Thanks for the anecdata. I too have seen this phenomenon, and I think it’s pretty common recently because the used car market is really out of whack. In my case, last year I bought a lightly used Sonata for about $30k with 12k miles, and today I could still trade it for about the same price with 31k miles on it. Where you’re wrong is that this phenomenon doesn’t apply in general to the used car market but only in the last few years because of the chip shortage shrinking the supply of new cars. Short supply in turn increased demand for used cars, raising the prices.