To buy new or used? Consumers who are debating that issue might be surprised that, according to a study from iSeeCars.com, certain models can be more economical when purchased new.

The average new car costs 30.2 percent more than the 1-year-old used version of the same vehicle, according to the study, which analyzed more than 7 million new and used cars sold from August 2018 to January 2019, compared the prices of new cars to lightly used equivalents and identified those with the lowest price differences.

But the study notes that certain new cars have a price difference of as little as 10.5 percent, or less than $2,300.

“Instead of buying a car that’s already been driven for one year, consumers can buy the new version of select vehicles for just a few thousand dollars more to avoid the uncertainties that come with purchasing a used vehicle,” iSeeCars chief executive officer Phong Ly said in a news release.  “When spread out over the average terms of a car loan about six years at a 4-percent interest rate, for example, the increased monthly payment can be as little as $35 per month. This price difference could even be less when you take into account new car incentives that may exist for a given model.”

The chart below from iSeeCars shows the 10 vehicles with the smallest percentage difference between the prices of new and used vehicles.  

SUVs dominate the list of cars that have the smallest change in price between their new and gently used versions. Seven of the top 10 models in the list are SUVs, and subcompact SUVs make up the top three vehicles on the list.  

“SUVs have eclipsed sedans as the most popular vehicle type, so it is no surprise that their surge in popularity has resulted in a below-average price difference between new and gently used versions,” explained Ly.

Among subcompact SUVs, the Honda HR-V takes the top spot with a 10.5-percent price difference. The second-ranked BMW X1 follows with an 11.7 percent difference, and the Subaru Crosstrek is next at 12.2 percent.

“Subcompacts are a rapidly growing segment because they strike the right balance of cargo room and other SUV perks while maintaining a price tag that is comparable to sedans,” said Ly. “Each are among the top models in their class, and the demand could be driving up prices for lightly used versions of these subcompact SUVs.”

The study also shows the popularity of small SUVs, with the list including the Honda CR-V at No. 4; the Mazda CX-5 at No. 8; and the Porsche Macan at No. 9.

“Both the CR-V and the CX-5  have high reliability and value ratings,” said Ly. “The lowest-cost model in the Porsche lineup, the Macan, was a Kelley Blue Book Resale Award winner in 2017 and 2018 and appeals to luxury buyers who want this desirable name badge.”

The Toyota Tacoma came in at No. 5, showing only a 12.3-percent price difference between new and used. “The Toyota Tacoma is known for its reliability and durability, and because of the high demand for lightly-used pickups, it maintains most of its value in the used car marketplace,” said Ly.

Only two passenger cars made the list, and they were compact sedans: the Honda Civic at No. 6 and the Subaru Impreza at No. 10.

“While the sedan segment as a whole is declining, this shows that there is still some demand for compact sedans,” said Ly. “The prices of compact cars rose in 2018 after years of declines due to rising gas prices and heightened demand from buyers looking for more affordable vehicles.”

The Honda Pilot midsize SUV came in at No. 7.

 “The Honda Pilot is known for its reliability and is among the more affordable third-row SUVs available,” said Ly. “The demand is high for this practical and dependable family vehicle.”

In addition to the cars with the smallest price difference by percentage, iSeeCars determined the top 10 cars with the smallest difference between new and lightly used vehicles by dollar amount.  The Honda HR-V came in at No. 1. The third-ranked Nissan Versa subcompact car, the seventh-ranked Nissan Rogue Sport subcompact SUV, the ninth-ranked Buick Encore subcompact SUV, and the 10th-ranked Chevrolet Cruze compact car were new to the list.

“Small cars and SUVs are priced lower than larger models, so there isn’t as much room for their price to come down from their new models,” Ly said.

Top SUVs to buy new over used

Drilling down further into the data set, iSeeCars determined the top 15 SUVs with the smallest price difference between their new and slightly used models.

Eight SUVs in varied sizes, including three midsize, three compact, and two subcompact, join the seven SUVs that made the aforementioned overall list.

The Honda HR-V led the list. The three additional midsize SUVs, which join the Honda Pilot at No. 5, include the Chevrolet Traverse at No. 10, the Toyota Highlander at No. 12, and the Toyota 4Runner at No. 14.

“The Traverse and the Highlander are popular and reliable family crossovers that are competitively priced for the segment,” said Ly. “The 4Runner is built on a truck platform and is known for its ruggedness and durability, which could explain why a lightly used version maintains most of its value.”

The three additional compact SUVs are the ninth-ranked Subaru Forester, the 13th-ranked GMC Terrain, and the 15th-ranked Subaru Outback.

“Both the Subaru Forester and the GMC Terrain earn high reliability and safety ratings, which contributes to their high demand in the used-car marketplace,” said Ly. “Technically a crossover wagon, the Subaru Outback has a niche following of consumers who want a rugged crossover with the cargo space of an SUV that handles like a car.”

The eighth-ranked Nissan Rogue Sport and the 11th-ranked Buick Encore were the two subcompact SUVs.

“Nissan introduced the subcompact Rogue Sport in 2017 to capitalize on the success of the compact Rogue and appeal to consumers who want a sporty and spacious vehicle with car-like dimensions,” said Ly. “The Buick Encore is among the top vehicles in its class in terms of quality and popularity and has resonated with consumers by offering style and sophistication with an average new starting price of $24,077.”

Ly said full-size SUVs were noticeably absent from the list, with reasons including typically higher starting prices. They probably must drop quite a bit in price to attract used car buyers, he said.

Top pickup trucks to buy new over used

The iSeeCars analysis included the price differences between new and lightly used light-duty pickup trucks to determine the trucks with below average price differences when compared to the 24.4 percent segment average.

The Toyota Tacoma came in at No. 1. The Toyota Tundra, at No. 3, joins the No.1-ranked Tacoma as the second Toyota pickup to have a below-average price difference.

“Toyota pickups are known for being indestructible, which contribute to their value retention,” Ly said. “Additionally, Toyota is not a major fleet seller, so there are not as many in the used marketplace compared to fleet sellers like Ford, which heightens demand.”

The second-ranked Chevrolet Colorado and the sixth-ranked Chevrolet Silverado 1500A have a price difference below the 24.4 percent average for the segment.

“The Silverado 1500 is known for its technological features in addition to its durability, which help contribute to a lower-than-average price reduction on its one-year-old models,” Ly said.

The Nissan Frontier ranked fourth with a 17.2-percent price difference.

“A new Frontier has the lowest starting price of its competition at $27,307, and its ability to attract more practical pickup buyers has helped it steadily grow in popularity in recent years,” Ly said.

The Ford F-150 ranks fifth and rounds out the list of trucks that consumers should consider buying new instead of lightly used.

“The Ford F-150 is the top-selling pickup, which means that its high demand results in its high value retention,” said Ly. “The F-150 joins the Tundra as the only two full-size pickup trucks with a below-average price difference between their new and lightly-used models.”

Methodology

iSeeCars.com analyzed more than 7 million cars sold between August 2018 and January 2019. New cars included in the analysis were from model years 2018 and 2019. Lightly used cars were defined as used vehicles from model years 2017 and 2018.

Models with low sample size and cars with outlier mileages were not included in the analysis.

The complete study is available at https://www.iseecars.com/cars-to-buy-new-study