Brand new 2020 car models will roll out this September. But is buying a new car the smartest choice for consumers?
“The new car shopping experience is a little easier, financing is better, a lot of the new technology is in the new cars, and of course that styling too,” said Nerdwallet’s auto expert Philip Reed.
But Reed cautions consumers about buying the latest models.
Something to consider when shopping for new or used cars: ask about a dealership's certified pre-owned cars, especially cars coming off lease soon.
Car leases usually last two or three years, and that makes for a steady supply of quality used cars.
"They don't have a lot of miles on them,” said Reed. “They are usually in really good condition and in some cases they are under warranty."
Some new luxury SUVs and cars can depreciate by almost 50% within three years of ownership, said Reed.
If you’re worried about safety, Reed says, “They’re making them more reliable, so there’s less and less reason to buy new cars.”
And also buying used can result in consumers saving on insurance and taxes, said Reed.
Even some veteran car salespeople agree.
“There’s so much money to be saved by buying used. There’s a lot of good opportunities now because leasing has risen into popularity,” said JP Bo, who has sold cars for 40 years, 34 of which at Pacific Honda on Convoy Street.
“Our used car business over the last three or four years has been extraordinary,” he added.
Certified pre-owned cars generally come with some sort of warranty.
But you'll get your best deals from a private seller.
