Buying a Used Vs. New Car: Which Provides the Better Deals?

Tesla Model 3 leads the list of cars that are best to buy new

iSeeCars.com analyzed prices from over 6 million new and used cars sold from August 2019 to January 2020. It identified the top ten cars that have the lowest price difference from their one-year-old used versions of the same vehicle and the cars with the greatest price differences. 

“While choosing a used car over a new car is typically associated with the greatest cost savings, sometimes the price difference isn’t that significant,” said iSeeCars CEO Phong Ly. “There are factors that can affect price differences beyond the overall popularity of the vehicle such as redesigns, which were common among the vehicles that made both ends of the list.” 

Best New Cars to Buy Over Used

“Instead of buying a car that’s already been driven for one year, consumers can buy the new version of select vehicles with a purchase price of just a few thousand dollars more to avoid the uncertainties that come with purchasing a used vehicle,” said iSeeCars CEO Phong Ly.  “When spread out over the length of the average car loan at 5.5 years, the slightly higher monthly payment can be offset by the car warranty and dealer incentives such as rebates.” 

Here are the top cars that consumers should purchase new, with the lowest differences in price after one year. 

The list of cars that have the smallest change in price between their new and gently-used versions is composed of a mix of vehicle types including two pickup trucks, two SUVs, two hatchbacks, two sports cars, one sedan, and one electric vehicle.

Earning the top spot is the Tesla Model 3, with a new version costing just 5.5 percent more than its one-year-old lightly-used version. “The Tesla Model 3 had the highest number of preorders of any car ever produced, and its backlog of orders helped further drive the high demand for the vehicle,” said Ly. “The vehicle didn’t meet its production goals until July of 2018, and because it’s so new to the marketplace and because of high owner satisfaction there is a low inventory of used versions.”

Two midsize pickups make the list including the second-ranked Ford Ranger and the ninth-ranked Honda Ridgeline. “The Ford Ranger returned to the market for the 2019 model year after an eight-year hiatus, so there is a low supply of late-model used versions of the truck,” said Ly. “Midsize pickups like the Honda Ridgeline are gaining in popularity as an alternative to their more expensive full-size counterparts, and since lightly-used trucks aren’t abundant in the used car marketplace they retain most of their value.”

The SUV with the smallest percent price difference is the third-ranked Chevrolet Traverse midsize SUV, with a new version costing just 11.7 percent more than a lightly-used one-year-old version. “Because of its segment-leading cargo room and abundance of family-friendly features, the Chevrolet Traverse has had a recent surge in popularity for those looking for a family hauler,” said Ly. “It was fully redesigned in 2018, and newly redesigned cars command more money in the used car market.” 

The second SUV on the list is the sixth-ranked Subaru Crosstrek subcompact SUV. “The Subaru Crosstrek is extremely popular thanks to its ruggedness and practicality, and is backed by the brand’s reputation for safety and reliability,” said Ly. “The popularity of the Crosstrek led to supply shortages for new 2019 models and it was also redesigned in 2018, so the demand for lightly-used models is high.”

Three Honda cars make the list including the fourth-ranked Civic hatchback, the fifth-ranked Fit subcompact, and the eight-ranked Accord sedan. “Honda’s reputation for reliability and lower than average ownership costs help drive their demand in the used car marketplace,” said Ly. 

Two sports cars round out the list including the seventh-ranked Chevrolet Corvette and the tenth-ranked Dodge Charger “New 2019 C7 Corvettes were deeply discounted before the introduction of the C8 in 2020, and as a result, there wasn’t as steep of a price difference between the new and used versions,” said Ly. “The consummate American muscle car, the Dodge Charger was a Best Resale Value honoree by Kelley Blue Book in 2019, so used versions don’t offer a great deal of savings.

Best SUVs to Buy New Over Used

Ranked third is the Toyota RAV4 Hybrid, accounting for the only hybrid SUV on the list. “The Toyota RAV4 Hybrid was fully redesigned in 2019, and its popularity has led to supply issues with many new car buyers having to wait weeks or months for the vehicle,” said Ly.  

Ranked fourth is the Jeep Wrangler Unlimited. “The Jeep Wrangler Unlimited was redesigned in 2018 after nearly a decade,” said Ly. “This vehicle is known for holding its value well due to its popularity and ruggedness, which help explain why lightly-used versions are close in price to new ones.” 

The lone subcompact on the list, the Nissan Kicks ranks fifth. “Nissan introduced the Kicks in 2018 replacing the Nissan Juke in its subcompact SUV lineup and offers class-leading cargo area as well as having one of the lowest prices in its class,” said Ly. “Because it was introduced in 2018, there isn’t a high supply of used cars so dealers are able to price them competitively.”

The Honda CR-V is the sixth-ranked SUV with the lowest price increase between its new and lightly-used version. “The Honda CR-V is among the nation’s best selling vehicles thanks to its reliability and top rankings within the booming compact SUV segment, which is why it retains its value,” said Ly. 

The Subaru Forester joins the second-ranked Crosstrek giving the automaker two vehicles on the list. “The Subaru Forester earns high reliability and safety ratings, which aid in value retention.”

Which Pickup Trucks to Buy New vs Used

Two Nissan pickups make the list including the fourth-ranked Nissan Frontier and the ninth-ranked Nissan Titan. “A new Frontier has the lowest starting price of all pickups, and its ability to attract more practical pickup buyers has helped it steadily grow in popularity in recent years,” said Ly. “Similarly, a new Nissan Titan costs less than its American counterparts, so its used car price is closer to its new car price as a result.

A pair of Toyotas earn the fifth and sixth spots. “Toyota pickups are known for being reliable and durable, which contribute to their value retention,” said Ly. “Additionally, Toyota is not a major fleet seller, so there are not as many in the used marketplace compared to fleet sellers like Ford, heightening demand.”

Ranked seventh is the Ram Pickup 1500 Classic. “The Ram Pickup 1500 Classic is the lower-priced previous generation of the pickup truck, which was sold alongside the truck’s new model that debuted in 2019,” said Ly. “It provides a more affordable alternative to the new Ram 1500, while still giving consumers the benefits of a new truck.”

The Ford F-150 ranks eighth. “The Ford F-150 is the top-selling pickup, which means that its high demand results in its high value retention,” said Ly. 

Ranked tenth is the GMC Canyon, which is made by the same manufacturer and built on the same platform as the third-ranked Chevrolet Colorado. “The GMC Canyon is among the top of its class for towing and hauling, and appeals to buyers who want a more upscale version of the Colorado,” said Ly.

Rounding out the list of the best trucks to buy new is the Chevrolet Silverado 1500. “Redesigned for 2019, the Silverado 1500 is known for its technological features in addition to its durability, which helps contribute to a lower-than-average price reduction on its one-year-old models.” 

Which Sports Cars to Buy New vs Used

Ranked third is the Subaru WRX. “The Subaru WRX has repeatedly won Kelley Blue Book’s Resale Value award, and is among the more reasonably priced sports cars,” said Ly. “Demand for these vehicles is high, so consumers are willing to pay a premium for lightly-used models.”

Two American classics make the list of sports cars that are best to purchase new: the fourth-ranked Chevrolet Camaro coupe and the sixth-ranked Dodge Challenger. “The Chevrolet Camaro and the Dodge Challenger are among the lower-priced cars in the sports car segment, so they don’t need a steep price reduction to appeal to used car buyers,” said Ly.

Ranked fifth is the Nissan 370z, which is also reasonably priced for the sports car class. “The Nissan 370z is not a high-volume seller, so there the supply is low in the secondary marketplace,” said Ly. “It’s also rumored to be discontinued after the 2020 model year, so buyers might be willing to pay a premium for these cars while they are still available.” 

Rounding out the list of sports cars with lower-than-average depreciation for the segment is the Porsche Panamera. “Porsche is known for having favorable resale value, and although the Panamera has a lower-than-average relative price decrease, there is still a $30,024 difference between new and lightly-used models.” 

Cars to Buy Used

Top Cars to Buy Used Vs. New

The list of cars that have the greatest change in price between their gently-used and new versions is dominated by luxury vehicles, which account for nine of ten cars on the list. The lone non-luxury vehicle to make the list is the Chevrolet Camaro sports car.

“Luxury cars depreciate quickly because buyers most luxury buyers aren’t willing to pay a high premium on a used or dated version of the vehicle,” said Ly. “They also have high maintenance and ownership costs, which also impact resale value.”

The car with the largest price difference between its new and gently-used version is the BMW 7 Series at 43.4 percent, or $47,447. It is joined by three additional BMWs: the fifth-ranked 3 Series, the seventh-ranked X6, and the tenth-ranked 4 Series. “Super luxury cars like the BMW 7 Series take large depreciation hits due to their high starting prices, which is coupled with the car being redesigned in 2020 to automatically date 2019 models,” said Ly. “Redesigned in 2019, the 2018 versions of the popular 3 Series likely aren’t in high demand, while the 2020 redesigned X6 isn’t as popular as other luxury midsize SUV thanks to its funky styling and lack of passenger and cargo room for the segment. The BMW 4 Series is among the more expensive cars in its class for both its price and maintenance cost, which can explain its price reduction for used models.”

Ranked third is the Jaguar XE, which can be purchased lightly-used for 40.9 percent less or $20,586 off its new version. “The Jaguar XE is among the more expensive cars in the small luxury sedan segment, so it likely loses a lot of its value to be attractive to used car buyers,” said Ly. “Jaguars are also notorious for high ownership and repair costs, which likely negatively impact its value retention.”

Two foreign luxury midsize sedans make the list including the second-ranked Audi A6 and the fourth-ranked Volvo S90. “Both the Audi A6 and the Volvo S90 earn favorable reviews for their performance and features, but are criticized for their lack of trunk space,” said Ly. “These vehicles likely lose value because of the declining popularity of the sedan segment, but are good options for those who want a great deal on a luxurious high-performing vehicle.”

Ranked eighth is the Land Rover Range Rover Evoque. “The Land Rover Range Rover Evoque was redesigned in 2020 and is among the bottom of its segment for fuel economy and reliability,” said Ly. 

Rounding out the list is the ninth-ranked Mercedes-Benz CLA subcompact car. “As an entry car to the Mercedes lineup, the CLA does not stand out among rivals in this segment,” said Ly. “It is criticized for its low-grade cabin materials and its difficult infotainment system.”

Best SUVs to Buy Used  

The three subcompact SUVs include the seventh-ranked Audi Q3, the ninth-ranked BMW X2, and the tenth-ranked Mercedes-Benz GLA. “The Audi Q3 was redesigned in 2019 and is among the highest-rated vehicles in its class, making it a great deal for those wanting a luxury subcompact vehicle,” said Ly. “Meanwhile, the Mercedes-Benz GLA and the BMW X2 are in the middle of the pack for ratings in the segment and are criticized for their slow acceleration and below-average passenger and cargo room.”

The two compact SUVs include the third-ranked Alfa Romeo Stelvio, the sixth-ranked Jaguar F-Pace, and the tenth-ranked Mercedes-Benz GLA. “The Alfa Romeo Stelvio was introduced in the U.S. in 2018, so consumers are likely to opt for a vehicle with a more established reputation in the highly competitive luxury compact SUV class,” said Ly. “The Jaguar F-Pace is one of the more expensive cars in its class and it dogged by Jaguar’s high ownership cost.”

The midsize SUVs making the list are the fourth-ranked Mercedes-Benz GLE and the fifth-ranked INFINITI QX60. “The Mercedes-Benz GLE was redesigned in 2020 and was named the top luxury midsize SUV from U.S. News and World Report, so consumers may not be willing to pay a premium for its used versions that didn’t earn as much acclaim,” said Ly. “Meanwhile, the INFINITI QX60 earns middling rankings for reasons like low-grade cabin materials and lackluster handling.”  

Rounding out the list is a second INFINITI model, the full-size QX80. “The INFINITI QX80 isn’t as popular as other vehicles in the full-size luxury SUV class,” said Ly. “It was criticized for its infotainment system, which got a much-needed update for 2020,” said Ly. 

Which Pickup Trucks to Buy Used Vs. New

Three full-size pickups had an above-average price difference between their gently-used and new models: the GMC Sierra 1500, the Pickup 1500, and the Nissan Titan XD. “The GMC Sierra 1500 and the Ram Pickup 1500 pickups are both full-size and are priced higher than not just their midsize counterparts, but also for the segment because they appeal to truck buyers who want more luxury,” said Ly. “The Nissan Titan XD offers more towing capacity than the standard Titan, but it isn’t as popular or as powerful as its American competitors in the segment.”

Which Sports Cars to Buy Used vs New

Cars to Buy New and Used By Metro Area

Buying Used Vs. New Cars: Which Should You Choose?

Why Buy a New Car? 

Why Buy a Used Car?

Insurance companies further add to the case for buying a used vehicle. “Most one-year-old cars also have lower auto insurance costs than new vehicles, which further adds to savings.” 

The Bottom Line

Methodology

iSeeCars.com analyzed over 6 million cars sold between August 2019 and January 2020.  New cars included in the analysis were from model years 2019 and 2020, while lightly-used cars were defined as used vehicles from model years 2018 and 2019. Low-volume models were excluded from the analysis, as were cars with outlier mileages. The average asking prices of the lightly-used cars were compared to those of new cars from the same model. The difference in price for each car was expressed as a percentage of the used average prices for the lists of cars to buy new, and as a percentage of the new average prices for the lists of cars to buy used.

About iSeeCars.com

iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars VIN check reports. iSeeCars.com has saved users over $210 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.