With fewer and fewer quality, low-mileage used cars on the market (thanks to slowed production output and reduced sales over the past few years), those who are looking towards saving some money are finding that buying a new car is costing roughly the same as buying a used one. In fact, in many cases, a new car is actually cheaper.
According to Edmunds.com, buying a new BMW M3 costs just $34 a month more than buying a one year old example. It gets even better if you’re looking for a Chevrolet Corvette, as a new model is about $12/month less than a used model.
These are just two examples in an industry that is filled with them. According to chief economist Paul Ballew, as much as 500,000 new cars would be sold to people who would have bought used.
Ballew said: “There’s a substitution effect going on between new and used. When you get those price gaps closing, you get people that are willing to shop new that wouldn’t have before.”
All this is good news for the auto industry, which has taken quite a tumble in the post recession era. Although some companies are still trying to recover, luxury car manufacturer BMW has risen 13% and Mercedes-Benz has also sold 7.3% more cars this year, compared to last. Even the sportscar market has seen a upswing, with a 2.9% growth.
So with car companies putting more effort into shifting new products, if you’re in the market for a car, surprisingly, you might get a better deal on a new one.