(TestMiles) - We’ve all heard it—buying a used car is a smart financial move, right? You get a vehicle with most of its depreciation already wrung out, leaving you with a relatively good deal. But what if I told you that the used car market has flipped on its head? If you’re considering buying a used car this year, you might want to think again.
Interest rates on used car loans have reached stratospheric heights, with some soaring as high as 36%, according to Black Book. The average rate now sits at a budget-busting 11.4%. Financing a used car at these rates is akin to flushing money down the drain. And before you start hoping for relief, let me dash those dreams—industry experts predict these sky-high rates will linger well into 2025.
But here's the twist: buying new might be the cheaper option for the first time in years. Yes, you read that correctly—new.
As we roll into Labor Day, prepare for some of the biggest car sales of 2024. After years of price hikes and empty lots, new car prices are finally coming down to earth. Cox Automotive reports a whopping 52% increase in inventory, with nearly 3 million new vehicles hitting the market. And dealers, eager to move this surplus, are dangling incentives like never before. Kelley Blue Book notes that the average discount off sticker price has climbed to $3,383.
“But wait,” you say, “aren’t new cars more expensive?” Not necessarily. Let me introduce you to nine of the best new cars you can snag for under $30,000—models that not only compete with their used counterparts but blow them out of the water.
First up, the 2024 Toyota Prius. At just over $29,000, this isn’t just another hybrid—it’s *the* hybrid, boasting a stunning 49 to 57 MPG combined. It’s the kind of car that will have you waving at gas stations as you drive by.
Then there’s the 2024 Mini Cooper Hardtop 2 Door. Quirky, fun, and priced at $25,800, this car offers nimble handling that makes every trip feel like a joyride. Think of it as your own personal go-kart, but with a much better sound system.
Looking to stretch every dollar? The 2024 Nissan Versa, starting at a mere $16,680, offers up to 40 MPG on the highway and packs in the best standard safety tech in its class. It’s practically the definition of value for money.
If hybrid sedans are more your speed, the 2025 Toyota Camry Hybrid is a no-brainer. At $29,535, you get legendary Toyota reliability coupled with up to 51 MPG—a blend of efficiency and style that’s hard to beat.
But the options don’t end there. Nissan, Hyundai, and more Toyotas are proving that you don’t have to empty your wallet to drive something new, safe, and tech-savvy. Take the 2024 Nissan Sentra, for example. Priced at $21,180, it’s packed with advanced safety features like the Intelligent Around View Monitor—because you can’t put a price on peace of mind.
For those craving a bit of adventure, the 2024 Nissan Rogue starts at $28,850 and delivers best-in-class gas engine fuel economy. It’s perfect for those spontaneous road trips, complete with Google built-in to keep you on track.
Or consider the 2024 Hyundai Elantra. At $22,775, it’s a digital haven, with wireless Apple CarPlay and Android Auto standard. Who says you can’t have it all?
And if sophistication is your thing, the 2024 Nissan Altima, starting at $26,370, offers premium features like Intelligent All-Wheel Drive and an available Intelligent Around View Monitor—luxury without the luxury price tag.
Finally, for urbanites, the 2024 Nissan KICKS—priced around $21,000—combines city-friendly size with tech that makes every commute a pleasure, like the Bose Premium Plus Sound System.
So while the used car market is weighed down by punishing interest rates, the new car market is bursting with opportunities. It might be time to rethink that old mantra—“buy used, save money.” In 2024, that advice could be as outdated as last year’s smartphone. Do your research, but if these trends continue, you might just find that buying new is not only the safer bet but the smarter one too.
Because in a world where the unexpected has become the norm, sometimes the best way to save money is to embrace the new.