"Clark Howard emphasizes that the conventional wisdom of buying one- to two-year-old used cars is outdated. He states, 'If you're asking me brand new, 1-year-old, I'd go brand new.' This reflects a significant shift in the market dynamics."
"The depreciation curve has changed, and Howard notes, 'You have to go significantly older in a vehicle and more miles before you've got a real benefit from the depreciation curve.' This indicates that the financial advantages of buying used cars have diminished."
The traditional wisdom of buying one- to two-year-old used cars has shifted. New cars now offer better value as used car prices remain high due to supply chain issues. New vehicles typically lose about 20% of their value in the first year, but the gap between new and used prices has not adjusted accordingly. Buyers are now finding that the depreciation curve favors purchasing new cars, making them a more financially sound choice compared to lightly used vehicles.
Read at 24/7 Wall St.
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