Want a less expensive car? Buy a new one

March 20, 6:19 AMAlaska Transportation ExaminerGeorge Angus

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For about as long as I can remember, automotive buying advice contained some mantra about never buying a new car - always buy used.  It's a topsy-turvey world we are living in right now.  With new car sales being the lowest in 27 years, it actually makes more sense these days to consider the purchase of a new car.

Rebates and incentives are just plain sky high right now.  News item: US car manufacturers are hurting.  They are doing most anything to get buyers back into the showrooms and if you are considering the purchase of a vehicle right now then shop the dealers before deciding that Craigslist is your only option.  A word of caution before you go, however.  You want to read my post on car dealership pricing practices first.

It's a simple matter of supply and demand.  More folks are wanting used cars these days, and that makes the ones available more valuable.  This drives up the price.

The other part of this equation to take into consideration is financing.  Typically, the terms for a new vehicle purchase are much more attractive than those typically available for a used car.

The takeaway?  I've preached on many occasions about the importance of doing your homework before buying a car.  The same rules still apply.  Know what it is that you want, spend the time online to research everything about the vehicle.  Get pre-qualified from your lender before you go to the dealership.