Buying a brand new automotive as a substitute of buying a used one is sort of justified, if one takes an in depth take a look at the numbers.
The common new-car cost is now $712. That, after all, is due a minimum of partially to demand being greater than provide. It’s not that Americans are shopping for fewer new automobiles than they used to, with gross sales having peaked at 17.4 million in 2016 and hovering round there till the Covid pandemic hit. It’s that they will’t.
The chip scarcity and persistent provide chain points imply that in terms of the need to buy a brand new automotive post-pandemic, it’s about how prepared persons are to purchase what’s obtainable, whereas presumably paying over the asking value.
The common value of shopping for a brand new automotive in May 2022 was $47,148, or about the identical as a Kia Telluride SX with all-wheel drive and the Towing Package. Conversely, excessive demand for brand new automobiles means the identical for used automobiles.
You may assume you’ll get a greater cope with a used automotive, however you probably received’t. Look for a used Kia Telluride and also you’ll discover that they’re constantly promoting for greater than MSRP. That’s the case with most fashions launched simply earlier than 2020 or after. The Telluride, with its quite a few accolades, is probably the most outstanding sufferer of demand.
But maintain trying, and also you’ll see that any redesigned Honda Civic, any Mazda CX-30, just about any automotive launched this decade will likely be asking for extra as a calmly used automotive. You might quickly understand it might make extra sense to purchase a brand new one with no miles placed on it.
Just don’t spend greater than $47,000. I’ll be mad at you.
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