Typically, a new car is considered a bad investment because it loses a big chunk of its value the minute you drive it off the dealer lot. That’s unless you bought that new car during the pandemic.
In that case, you likely made an amazing investment because you could now possibly sell your one-year-old car at a profit or, at least, get back nearly what you paid for it, according to an analysis Edmunds.com conducted for CNN Business. Normally, a dealer selling a one-year-old used car will get about 80% to 85% of its original price, according to Edmunds.com. But, according to the site’s most recent figures, car dealers can now sell one-year-old used cars for about 95% of the original price. That’s the average. And some used cars and trucks are worth even more than they cost when they were new.
What makes your Jeep Wrangler, Subaru Ascent or Honda Civic worth more than it was when it was brand new a year ago is the simple fact that it exists. It is a car that has already been built, at a time when there is enormous demand for cars and SUVs and not enough inventory to meet that demand. Due to disruptions in supplies of crucial computer chips, auto makers are having trouble making new cars. In one extreme case, a 2020 Chevrolet Corvette is worth $26,000 more than it was as a new car a year ago, according to the analysis by Edmunds.com. People were paying, on average, about $81,000 for brand new Corvettes last summer. (That was slightly above sticker price.) The current retail value of a one-year-old used Corvette is about $107,000, according to Edmunds.com. Jeep Wranglers that were bought last summer are worth, on average, about $3,200 more now, according to Edmunds.com. A Subaru Ascent is worth roughly $1,600 more and a Honda Civic is worth about $1,700 more.