Are Used Cars Worth It

Welcome to Ask Clark, a column designed to answer your financial questions, by money skillful Clark Howard.

What'south Better To Purchase Now: a New or Used Car?

Joseph from Arizona asks: "I know that conventional wisdom is that buying a used car offers better value in most cases. I need to become a new vehicle because my 2005 car has finally given up.

"Given the current conditions in the new and used markets, has the situation changed to where information technology's better to buy new at this fourth dimension?"

Clark'south Take on Whether It's All-time To Purchase a New or Used Car Right Now

Clark says: When you lot're comparison shopping betwixt new and used cars, aim for a used vehicle that's three years old with a savings threshold of at least i-3rd.

"If you can buy that iii-twelvemonth-old vehicle for a third less than what a new one would be, then become alee and purchase the iii-yr-quondam used vehicle," Clark says. "On the other hand, if the gap is less than that, that would push you more toward buying a new one."

Clark has long been a fan of buying used vehicles around three years old because the brunt of the depreciation gets eaten past the start owner.

With that being said, he acknowledges that there are extreme shortages in the car marketplace correct now.

"For a while earlier this year, in that location were bigger inventory problems in the used vehicle market place than in the new. That is no longer true," Clark says. "New vehicle sellers are facing extreme inventory problems. If you drive past new vehicle dealer lots, you'll meet how empty most of them are."

He adds that past doing the math, you'll exist able to cull a new or used machine that makes the most sense for your wallet.

"Looking at a 3-year-old vehicle of a particular brand and model that you're interested in — and then comparison it to the price of a new one of that make and model — is how you'll exist able to make that best decision," he says.

Here are more tips from Clark on how to buy a new car or a used car.

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More than Resources From Clark.com:

The Best Motorcar-Buying Services
Carvana vs. CarMax: Which Is Better?
Best and Worst Car Insurance Companies

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