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Stock impact report

New car prices are near $50,000, but buying used isn't always cheaper—here's why [CNBC]

CarGurus, Inc. - Class A (CARG) 
Last cargurus, inc. - class a earnings: 2/13 04:05 pm Check Earnings Report
US:NASDAQ Investor Relations: investors.cargurus.com/investor-relations
Company Research Source: CNBC
New vehicles typically lose about 30% of their value within the first two years, according to Kelley Blue Book . Plus, the price gap between new and used cars has largely widened since 2023, making used vehicles more attractive for buyers looking to avoid early depreciation, per Edmunds But those upfront savings don't account for everything buyers end up paying. Monthly costs are also shaped by loan interest, repair and maintenance risk and how long a buyer plans to keep the car — factors that can erase the advantage many buyers expect from going used. “Most buyers significantly overweight depreciation because it's the easiest number to understand,” says Scott Kunes, chief operating officer of Kunes Auto and RV Group. “Depreciation absolutely matters, but it shouldn't be the dominant factor. What really impacts a buyer's financial health is the total cost of ownership.” The tradeoffs between buying new and used New cars can be significantly more expensive upfront: Buyers paid Show less Read more
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