As anyone who’s paid any attention whatsoever to the automotive business in recent years knows that pandemic-era factory closures, supply chain shortages and supply and demand issues sent the cost of both new and used cars through the proverbial roof for an extended interval of unaffordability.
Fortunately, dealer inventories, transaction prices and automakers’ incentives have since been edging their way back toward pre-COVID normalcy, though it’s not there quite yet. Last month the average price of a new vehicle was at $47,244, according t0 Kelley Blue Book, which is 2.2% less than it was a year earlier, though it remains nearly 14% costlier than it was back in February 2021.
With the demand for electric vehicles market taking a nosedive in recent months, new EV transaction prices have been dropping the fastest and steepest among all vehicular genres, averaging 12.8% lower than they were a year earlier, with some models going for 20% or more less than they did in 2023. And while discounts and rebates are becoming common once more in the broader market, a few models that remain in extremely short supply and strong demand can still command in excess of their MSRPs.
Used vehicle prices are likewise coming back to earth, dropping by nearly 15% over the last 12 months, according to Cox Automotive. While that generally portends well for those seeking relief from high new-car costs, some models that manage to hold onto their resale values the most tenaciously may not offer significant savings over buying a factory-fresh edition. On the other hand, models that lose the most value in the first year after driving off a dealer’s lot can be the best bargains among gently used vehicles.
“Car buyers seeking the best value often shop used models instead of new,” says Karl Brauer, executive analyst for the online marketplace iSeeCars.com. “While a used car almost always costs less than it did new, some models lose more than 25% of their value after just one year, giving buyers a near-new ownership experience at a substantial savings.”
According to a study of 1.6 million new and year-old used vehicle sales iSeeCars conducted from January through March 2024, the best car to buy gently used instead of new is a Mercedes-Benz EQS full-electric luxury car, which drops an average 47.8% of its original value after a year’s ownership.
At the other end of the balance sheet are a number of vehicles iSeeCars.com determines lose so little of their original worth in the pre-owned market, one might as well instead spend a few extra bucks to obtain a pristine new one.
Topping that list is the large and luxurious Land Rover Range Rover SUV that commands an average 2.8% more as a year-old used model than as a new one. Of note, as far and fast as electric car prices are falling, the values of gas-electric hybrid models, which save money at the pump but without an EV’s inherent range issues, are rising rapidly and make up five of the 10 models that make more sense to buy new rather than used.
Top 10 Cars To Buy Lightly Used Instead Of New
- Mercedes-Benz EQS: -47.8% ($71,231)
- Nissan Leaf: 45.7% ($18,756)
- Jaguar F-Pace: -35.4% ($52,010)
- Alfa Romeo Guilia: -33.4% ($32,467)
- Kia EV6: -33.3% ($36,243)
- Hyundai Ioniq 5: -32.9% ($34,303)
- Volkswagen ID.4: -32.9% ($31,870)
- Alfa Romeo Stelvio: -32.3% ($36,630)
- Nissan Murano: -32.0% ($29,458)
- Mercedes-Benz S-Class: -31.5% ($99,598)
Top 10 Cars To Buy New Instead Of Lightly Used
- Land Rover Range Rover: +2.8% ($147,311)
- Kia Rio: -0.1% ($18,682)
- Mercedes-Benz G-Class: -2.3% ($196,112)
- Ford Maverick: -4.1% ($32,505)
- Ford Maverick Hybrid: -4.4% ($32,039)
- Toyota Sequoia Hybrid: -4.6% ($77.653)
- Toyota Corolla Hybrid: -5.0% ($26,038)
- Toyota RAV4 Hybrid: -5.3% ($37,727)
- Honda Civic: -5.5% ($26,934)
- Kia Sportage Hybrid: -5.9% ($33,397)
Source: iSeeCars.com. Percentage of original values lost (or gained) after a one-year ownership period, and the most recent used-vehicle prices for each model are noted. The full report can be found here.
Read the full article here
