Some Used Cars Now More Expensive Than New Ones

Because new car dealers are offering rebates and discounts, and the demand for used cars is higher, buying a new car may actually be cheaper than buying a used one.

The Associated Press reported:

“Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.

“It’s simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.”

At the same time, you can get a better interest rate on a new car, making it an even better deal:

“Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5 percent, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.

“For example, a $30,000 car with an annual percentage rate of 2.9 perc