Some new cars cheaper than used, including Altima and Civic hybrids
One of the options we looked at in last week's Greenlings post on buying a new green car was whether a used car or a new hybrid or diesel made more sense. Turns out our friends at Green Car Advisor have found out a little more information on new cars and used cars that should be part of anyone's buying calculations these days. Thanks to falling car prices, financing offers and tax credits, it can be cheaper to buy a new hybrid than a used one. Edmunds just released a study that found that buyers can, with good financing, get a new car for less money than paying cash on a used late model vehicle. Two hybrids, the 2009 Honda Civic Hybrid and the 2009 Nissan Altima Hybrid, can both be had for less money when they're fresh off the lot. Bad news if you're trying to sell one in the classifieds. There are a lot of qualifications to these findings (interest rates can vary widely, to name just one example), but if you're thinking of buying one of these two hybrids, do some math before you go looking for the giant inflatable gorilla.
Gallery: 2009 Honda Civic Hybrid
[Source: Green Car Advisor]
Photo by Peter Kaminski. Licensed under Creative Commons license 2.0.
Reader Comments (Page 1 of 1)
win39 2:10PM (3/22/2009)
Can we just dispense with the weird sales stats. First we are told that hybrids have bad resale value. Second we are told that new hybrids are a sales disaster because the sales have dropped from a year ago even though the drop is less than that of the rest of the car market. Now we are told that used hybrids are more costly than new ones which would mean demand is higher for used. Obviously something is wrong here.
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chiapet 2:36PM (3/22/2009)
@win39 welcome to the fast changing economic climate keep up or you will fall behind
win39 6:30PM (3/22/2009)
That has nothing to do with it, Chiapet. What it has to do with is reporting of information without checking it out. Do you really think anyone is buying a used hybrid for more than the cost of a new one when they supposedly have thousands sitting around? This kind of reporting is little more than gossip or repeating an urban legend.
Snowdog 6:53PM (3/23/2009)
Agree 100%. Repeated posting of sensationalist, unverified and un-analyzed stories.
Green Car Congress is really much higher quality all around, but they probably suffer because they post fewer and less controversial postings.
So I guess if we are here we are getting exactly what we deserve, because the better version already exists.
indi 3:29PM (3/22/2009)
This is no big surprise. Most people owe more than their trade is worth for the firstfew years of ownership, and dealers have always had used cars that cost more than the same model new.
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gorr 3:40PM (3/22/2009)
I just writed in another post some minutes ago to stop buying new cars and customers have follow my advices, im glad about it. It's been 100 years that we must pay fuel to power car forward at our expences finnancially and medically and biologically. If actual car manufacturers along criminals cannot understand this then they must head out the sink. Names to remember are already written, gm, toyota, ford, etc. they are now directly paid with tax money and secret protection given by big oil and wall street traders. Consumers must now learn how to power old used cars with water and not rely on tuning shops because tuning shop cannot even tuned actual cars. I noticed that tuning shops worth nothing, they can have taken this market from long time ago but they suck and just sell cheap products like bigger carburators for 1960 v8, chromed regular bolts, oil and gas treatment, cheaper and lighter and fast rusting sport mufflers, etc.
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Alex G 5:19PM (3/22/2009)
Sorry, but this is a clear cut case of crap targeted at boosting sales. There isn't a clearly thinking person out there who would believe that equally equipped 2-3 year old model purchased privately would cost more than a current year model off the lot. I'm sorry, you have to be a complete tool to even consider this possibility.
Of course, you can always find idiots, especially employed by dealers who will set atrocious prices, but that's hardly a measuring stick. I had to deal with this myself, in fact a dealer was trying to convince me that a low mileage 2006 mazda 3 is worth just a few $K less than 2009.
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Brn 5:40PM (3/22/2009)
There are plenty of people out there that don't even consider new cars and don't price shop them. They had an idea as to what the list price was for a new car and the used one was a lot less. When I showed them what a new one was REALLY going for (several thousand under list), a light bulb went on.
Is this person stupid? Far from it. They simply didn't have all the information on new car prices. Shouldn't be expected to either, as this person had never seriously considered new. They've always bought used.
Alex G 6:10PM (3/22/2009)
Nobody's arguing that dealerships can knock off a few grands of so called "MSRP" (only to make it up with vin etching, rustproofing, administration fees, delivery charges, vehicle preparation charges, window tinting, wheel locks, block warmers, remote starters, overpriced accessories and so on).
The point I was making is that edmunds has gone so bias as to actually claim that an equally equipped 2-3 year old models on AVERAGE cost more than brand new. The market just doesn't work that way.
Allow me to make a simple example. Suppose I bought a 50" plazma from sony 3 years ago for $4k and they sell current model in the same line for $2k today. Would there be a person out there stupid enough to buy my used TV for $3k? (obviously there are tards out there whom dealership really like to tend to, but I'm speaking on average here). I think the answer is pretty evident.
Even if dealers bring prices down to factory costs, even before taxes, used cars still cost less when comparing equal models. I bought one car brand new and with all research I did and getting a good price (knowing factory costs), the payments I was making on it weren't able to keep up with its market value depreciating. I will never, ever in my life by a new car again just for that reason alone, save another dozen or so I can list.
Rich 9:19PM (3/22/2009)
This story is true from what I have seen. Just take a look at the newspaper auto classifieds and the big full page ads from dealerships. Some models (I noticed altima, Pontiac G6, pu trucks and SUVs) can be had for way less new at the dealership than used.
My take on this is that new car model that are not selling are being discounted heavily and the owners of the used cars have no idea that prices for new cars have dropped.
The used cars I saw in the classifieds that were priced higher than new were typically 2-4 years old. Many were loaded with options while the dealer ads were bare bones. But if you are looking for a 'cheap' car you don't have to buy used.
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