According to an
, via the
Los Angeles Times
, it is now possible to spend less money on a new car than on a used one, especially if you are rich. Recession shoppers are looking for used cars, driving up prices, the Times reports:
Overall, Edmunds said, the average price of a 3-year old car is 11.1% higher than it was last year, which it called “a remarkably high year-over-year increase.”
Meanwhile, new-car dealers are cutting prices to try to move inventory. And because interest rates on new-car loans tend to be lower than rates on used-car loans, the Edmunds calculations found that some models have a lower expected monthly payment if bought new.
Still, this survey comes from a car-listing site, and thrift isn’t always cheap. You could save $1,680 on a Volkswagen Golf PZEV four-door (retail price $19,335) or $1,320 on an entry-level BMW 128i coupe ($29,150). But you can save an eye-catching $3,780 over the loan lifespan of your Audi S4 Premium Plus quattro sedan ($45,900), or $3,180 if you buy a new Cadillac CTS-V sedan ($60,720).
And it’s important to save your money, because the CTS-V only gets 16 miles to the gallon.
Cadillac Escalade ESV with all-wheel drive
, on the other hand, costs $1,980 more to buy new than used. That’s OK, because nobody who buys an Escalade knows anything about money or cars except they have too much of both. The monthly payment is $1,058. Why does anyone ever buy an Escalade? It’s the
, only less agile.