The cost of a new car is typically higher than the cost of a used car, but the average new car price is still well below that figure. According to research by the Kelley Blue Book, the average new car costs $45,717, up from $43,477 in November. While this increase may seem small, it is indicative of the rising cost of vehicles in general. Consumers are willing to spend more for a high-end, desirable car if the vehicle has the features they desire.
New cars come with the latest safety features and are more reliable, but the price is usually higher than the cost of a used car. Additionally, new cars usually come with higher insurance costs, but used cars don’t depreciate as quickly. Another consideration is the value of your car in five years. Some cars hold their value better than others, and many new cars can be financed with a low rate.
Trade-in values vary widely. It is always best to take a look at your old car’s value in the marketplace before making a decision. If it’s worth more than you paid last year, consider selling it to a private owner. Otherwise, you could end up paying more than what you’d get for your used car. And if you’re not sure about the trade-in value, consider keeping your old car for a year and taking good care of your new one.