Clark Howard's Tips
Buying new vs. used cars
October 26, 2004
Clark has long had a bias for used car purchases instead of new car purchases. But he wonders if buying new is sometimes the best idea.
New cars can be great deals, especially with all of the sales incentives and financing rates out there. At the same time, used cars that are a year or two old are the best deal they've ever been.
All of the sales incentives in the new car market have caused people to ditch old cars that they would have kept longer otherwise. And used cars dealerships have had to drop in price in order to be competitive. So the former has hastened the latter.
Also, remember that new cars lose more than one third of their value in the first 12 months. In the first three years, they lose 60 percent of their value. For this reason, buying used luxury cars is a growing trend.
No matter what kind of car you're going to buy, always have it inspected by an independent mechanic.
Consumer advice courtesy of
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