‘I noticed on Autotrader the used rav4s from 2016-2023 are nearly the same as a new one!’: Should you buy a used or new car in this game-changing market? Expert weighs in
Since the pandemic, prices for multiple items have gone haywire. Groceries, gas, and energy costs have skyrocketed in price, while televisions, computers, and audio equipment dipped in price, according to CNBC. In this topsy-turvy world, some of the age-old rules have gone out the window.
One prominent rule is that buying a used car instead of a new one is cheaper and smarter.
Recently, TikToker and car expert Tomi Mikula (@tomislavmikula), founder of car-buying service Delivrd, garnered over 220,000 views as of publication when he argued that people should buy a new car instead of used because of the current inflation.
"If you are even considering buying a used car in this market, well, you should think twice because you're probably overspending," Mikula said.
According to him, "used car prices are so inflated" that newer models can be purchased cheaper than older ones.
"I've seen 2024 RAV4 I can negotiate at a cheaper price than I can a 2022 because that's how inflated used car prices are," he said.
Another reason is the interest rate, which he claims starts in the "high fives and low sixes" for a used car but starts at around 2.9 to 3.9 percent for a new car.
"I'm telling you, it's a much better investment," Mikula said.
One viewer who searched Autotrader, finding Toyota RAV4 models from 2016-2023 in the same price range, agreed with Mikhula's assessment: "Yeah I noticed on autotrader the used rav4s from 2016-2023 are nearly the same as a new one! I was shocked. Rather buy new."
What do other experts say?
Mikula isn't the only expert predicting this seismic shift in the car market. Multiple experts have noted that new car prices have been slashed in the last few years as inventory wastes away in car lots. According to an article from KBTX, data shows that car prices increased over the last three years, but they're not much higher than they were in 2021. Data shows that from 2022 to 2023, new car prices rose by 1 percent and dropped by 0.04 percent in January of 2024.
Cars.com reports that the car price increase was caused by a multitude of factors, including inventory shortages, supply chain issues, and increased demand. However, new car production has recently helped ease these issues. This normalized production means that newer cars can be found for under $30,000 while used cars are still suffering from the shortage created during the pandemic.
Additionally, car dealership Texas Carz states that buying a new car is easier because customers don't need to source a vehicle history report, are able to get a new car deal, and new cars are cheaper to finance.
@tomislavmikula Replying to @painted_porch dont buy used cars #carbuyingtips #carbuying #delivrd #toyota ♬ original sound - Delivrd
Still, many viewers disagreed with Mikula's assessment.
"Registration and insurance on a new car is gonna cost you a fortune," one said.
"But my teen doesn’t need a new car," a second added.
"Saving a few thousand dollars isn’t that big a deal? A penny saved is a penny earned. I’ll buy my used car cash forget interest rate," a third remarked.
The Daily Dot emailed Mikula and Autotrader for more information.
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