The allure of buying a new car and driving the shiny, new vehicle off the lot is enough to send anyone running to the closest dealership. But, as most savvy car buyers know, once the car leaves the lot it begins to depreciate. In fact, depreciation accounts for 45 percent of a new vehicle’s owner costs over the first five years, with the steepest drops in value coming in the first year, according to Consumer Reports (CR).
So is buying that brand-spanking new car worth it if it’s just going to drop in value? Consumer Reports says no.
A CR study found that buying a reliable, late-model car can save drivers thousands of dollars over the first five years of ownership. For example, consumers can save up to $13,000 if they buy a 2005 Toyota Camry instead of the 2008 version. Additionally, the savings double for SUV drivers. Consumers can save $25,500 over five years if they purchase, say, a three-year old Chevrolet Tahoe instead of the a new one.
“A reliable late-model used car can be one of the best values out there when buying a car,” says Rik Paul, Consumer Reports’ automotive editor, in a press-release. “Savvy shoppers can also get a more upscale model with more features for the same owner cost as a less expensive new car.”
And don’t worry about buying a used car that will turn out to be a lemon — that stigma no longer holds true. CR’s reliability data shows that cars, overall, are much more reliable today than in years past. In fact, the rust and exhaust problems, once common in older cars, are no longer a major concern, reports CR.
However, prospective car buyers should know that even though late-model cars are just as reliable as newer ones, if they haven’t been properly maintained then the used car’s reliability is questionable.
If you have questions about a car’s reliability check Consumer Reports predictions at ConsumerReport.org/cars.
If you’re searching for a reliable, used car check Military.com’s Classifieds section. You can find a wide selection of used car’s that are for sale by the owner.
