When browsing through Craigslist I’ve noticed a number of dealers using the tagline: “Why buy a new car?” Case in point below.
Now, the dealer throws that in to say: Hey, dummy. Don’t waste your money buy a new car when you can buy a great used car for cheap. Makes sense, right?
The thing is, that only works when the used car is actually cheaper. Let’s take a look at this ad in particular.
Oh man! If I could get a 2010 Nissan Versa 1.8 S with 21,000 miles for $13,900, why would I ever buy new?
Well, I think I would definitely rather buy a NEW 2011 Nissan Versa 1.8 S if I could get it for less than the 2010 used one. And that’s exactly what I could do.
Now, it should be obvious to the dealer why I might want to buy new. Zero miles. Brand New. $558 less. Both of these car prices don’t include tax and licensing fees. I am seeing this across the board when I’m looking at used cars, particularly from Toyota, Honda and Nissan. Sometimes people are paying more for a used car than they are for a new one on a great deal. Seems a bit ridiculous to me, but maybe somebody out there could explain the logic to me.
I’m scratching my head on this one.. I don’t know how a dealer thinks they can sell a 2010 used model for the same price as a brand new 2011.
I assume you used Trucar to come up with that best local price. I just took a look at KBB to see what they showed for the fair purchase price. KBB has a fair purchase price of $15,123. Maybe the dealer is basing it off of that and trying to find an uneducated consumer to sell that 2010 model to.
I agree with your assessment, I think that’s what the dealer is banking on.
I also think it goes to show a couple of things:
1. How misspriced the used car market is vs. the new car market in respect to particular cars. I think sometimes people just see MSRP of a new car and then see what a use car is going for and go used (since that used Versa is nearly $2k less than 2011 MSRP).
2. How searching for a great deal on a new car right now can beat out buying a used car.
This doesn’t mean that I intend to buy a new car as my next car. I actually plan on buying used because I would likely buy something in the $5-6k range. But I’m always open to changing my mind about certain things and don’t just want to dismiss new cars because as a general rule buying used saves you money.
It may be true that Nissan Versa doesn’t really stand out in terms of performance and comfort but it is very advantageous in terms of bargain-basement pricing.
I still don’t think that buying a new car is a good deal. I’d rather buy a $5k car and keep running it into the ground. This does give some food for thought though.