BusinessWeek did a little math and discovered that if you lined up all the new financing deals, tax incentives and discounts — a new car might actually be cheaper than a late model used one. But do you care?
“This is a terrific time to buy a new vehicle,” says Jack Nerad, executive market analyst at Kelley Blue Book. The market favors buyers so much that, with financing rates factored in, some new models are less expensive than year-old, used versions of the same car, according to an analysis by car-buying site Edmunds.com. A back-of-the envelope calculation finds that a Chevrolet Malibu with a $25,000 list price could effectively sell for about $10,000 less if all of the proposed incentives are put in place.
That’s cheap, but is it cheap enough?