This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Cars You Might As Well Buy New Instead of Used

Stocks in this article: F HMC TM

NEW YORK ( TheStreet) -- The U.S. used-car market is facing big supply shortages and unusually high prices these days, so consumers might as well buy certain models new instead of used, since there's little difference in price.

"We're in a bit of a strange situation right now in that there simply isn't a lot of used-car inventory out there," says Eric Lyman of market tracker TrueCar.com.


Dealers have few used cars to sell because not many people bought or leased new vehicles during the 2008-10 economic meltdown, so there's a dearth of 3- to 5-year-old automobiles entering the resale market right now.

That's resulting in higher-than-normal used-car prices, especially since plenty of Americans are still pinching pennies and opting to buy pre-owned vehicles instead of new ones.

At the same time, today's low interest rates mean automakers can offer customers who can afford new vehicles cheap loans and other enticements.

"The incentives that manufacturers are putting on new cars in terms of cut-rate financing or lease deals can actually make new cars more attainable than used ones," Lyman says.

Adding to the similarities between some new- and used-car prices, some models haven't undergone major redesigns in several years, so older versions sell for almost as much as 2013s do.


Here's a look at five vehicles TrueCar recommends consumers buy new instead of used, as you'll save less than 19% by getting 2010 or 2011 versions. (The typical 2- to 3-year-old car costs around 30% less than its new counterpart.)

All savings estimates refer to price differences between the average new car and that of comparable 2- and 3-year-old editions sold between Jan. 1 and May 17 at some 14,000 U.S. dealers that TrueCar tracks.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs