New vehicles can be a better deal in these unsure times

As the auto industry undergoes a profound transformation, brand new vehicles may be a much better investment than pre-owned automobiles. Car buyer incentives from some automakers are so generous that conventional wisdom about car buying can be tossed out the window. Some models made by certain manufacturers could end up costing less over time than the exact same vehicle that has been on the road since the year before. This makes it easier than for those who take out installment loans for their automobiles. Post resource – New cars are cheaper than used cars in an upside-down economy by MoneyBlogNewz.

Get free funding from auto lenders

Unless you're paying quick money, getting a loan for a new automobile could be smarter in many cases than buying used. There are very low loan rates for new automobiles due to the interest rates from the recession. According to Edmunds.com, the average rate for an auto loan was a mere 4.16 percent in December. There is no interest on over 15 percent of auto loans. Businesses are that desperate to sell. On 50 percent of loans, there is 0 percent interest from General Motors that is actually doing well after the government bailout. Not everyone can get 0 percent funding though. In order to qualify for this, you’ve to have at least a 650 and even 700 FICO score.

A used auto is not always less expensive than a new vehicle

You will find about 8 percent interest rates for used vehicles right now although new cars are around 4 percent. There have been many reasons leading to there being less of a price gap between brand new and used automobiles too. About 700,000 used vehicles were taken out of the system in 2009 with the "cash for clunkers" program that occurred. Because of the financial crisis, less have wanted to trade in used vehicles. This has been hit hard. Newer models are cheaper over the period of a five year loan than a one year old edition. All of these things ought to be taken into account.

How do I know which brand new vehicles are less expensive?

There was a goal in mind at Edmunds.com of making a list of new automobiles cheaper than used cars. In order to do this, the 0 percent new car interest rate was compared to a 7.7 average used-car interest rate. There were several incentives added with auto loans being in five year terms. The Toyota FJ Cruiser base model showed a savings of $1,320 on the list. The list also showed a savings of $1, 320 and $1,020 for the Honda CR-V EX and the Audi S4 Premium Plus Quattro Sedan.

Information from

Market Watch

marketwatch.com/story/story?Guid=94f611d3-aa3c-4b21-b432-90910a50e8e0

Money Watch

moneywatch.bnet.com/saving-money/blog/cars-money/flash-new-cars-cost-less-than-used-cars/460/

Edmunds.com

edmunds.com/car-news/new-vs-used-car-buying.html