New vs Used
Trying to save money on a car? Buying used may end up costing you more...
NBC -- A well-known car buying website is making that claim after some extensive research. What you'll pay these days for a used car has some experts saying it's actually cheaper to buy a new one.
The reason? Financing the new could cost less.
Jessica Caldwell, an analyst at Edmunds.com, says "we've been looking at this data for the past year and a half..since the recession hit."
Analysts at the auto-sales research site, Edmunds.com say the recession has driven up demand for used cars.
People think the used one is the better bargain.
But the prices of used cars are up, too, by as much as 11.5% percent.
And they just can't compete with the much lower costs of financing a new one.
Jessica Caldwell says "low finance programs like 0% financing for 60 months or $5,000 cash back, when you do the math and when you look at the payments over the course of the loan, it looks as if a new car could be cheaper than a used car."
Edmunds found 93 models that were cheaper or about the same new as buying a year-old used one.
Their research is supported by consumer reports and is further proof that the price gap between new and used cars has been narrowing for about 18 months now.