4 Cars That Cost More Used Than New
The whole point of buying a new car is to save money by letting the original owner eat the depreciation. However, market forces in the post-COVID-19 auto industry have forced the price of some used models up so high that it can actually be cheaper to buy them brand new.
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“While it may seem counterintuitive, there are a few key factors that can drive up demand and costs for secondhand rides,” said automotive engineer and consultant William Green, who worked as a transmission control engineer at Ricardo, a vehicle validation coordinator at McLaren and a control and simulation engineer at Contract Innovation. “The main culprit? Limited supply failing to meet insatiable consumer appetites.
“When an especially hot model comes around, buyers will clamor for it — and if availability at dealerships is scarce, the market forces of supply and demand take over. The used car market operates under the same principles as any other. Price is dictated by what consumers are willing to pay. When availability is limited on the newest, hottest rides, pent-up demand inevitably trickles into the pre-owned sphere.“
Here’s a look at the vehicles that might be cheaper to buy new than used.
Ford Bronco
Ford resurrected one of its most beloved and rugged discontinued vehicles three years ago as an answer to the Jeep, and shortly after that, the laws of supply and demand — and an overheated used market — put a premium on previously owned models in good condition.
“The Ford Bronco made a splashy return for 2021 after a 25-year hiatus,” said Green, who is also an entrepreneurial website developer, publisher and literature aficionado who spent 10 years building the poetry database Poem Analysis. “This rugged off-road SUV proved an instant hit, with order banks overflowing and production struggling to keep pace. As a result, even gently-used Broncos started trading at premium prices over their new MSRP simply due to lack of inventory.”
The 2024 Bronco starts at between $39,630 and $90,035, depending on the package, and a quick search on Carfax shows several models from 2022 and 2023 at, near or even above the MSRP for a brand-new one.
For example, a used 2023 Big Bend edition currently lists for $42,973, which Carfax calls a “great value” because it thinks it should be a higher $46,450 — but a brand new 2024 Big Bend edition Bronco costs just $39,630.
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Toyota Sienna
The Bronco wasn’t the only vehicle whose production fell short of sky-high demand three years ago, when clogged supply chains and soaring auto inflation sent the price of used vehicles skyward.
“A similar story played out with Toyota’s redesigned Sienna minivan in 2021,” said Green. “Families anxious to get their hands on this comfortable hauler found themselves facing extensive waitlists. Cue the used market stepping in, with one-year-old Siennas listing at or above MSRP to meet the pent-up demand.”
According to Car and Driver, the Sienna was that year’s best-selling minivan, with buyers gobbling up 107,990 units, more than double the 42,885 Siennas sold the year before and far ahead of the No. 2 Honda Odyssey’s 76,125 units sold.
The completely redesigned 2021 model got rave reviews, with Kelley Blue Book naming it not only the top-ranked minivan of the year and one of the 12 best family vehicles but also the Best Resale Value award winner — and its negligible depreciation keeps used models expensive.
The 2024 Sienna starts at $37,685 for the LE base model, but Carfax is listing multiple used 2023 LEs for more — several for $39,995 and one for $41,759.
Mercedes-Benz G-Class
Even some luxury vehicles, which are known for rapid depreciation, can cost more used than new. One of them is the Mercedes-Benz G-Class, which Green called a “boxy, brutishly handsome SUV that oozes equal parts luxury and capability.”
“Demand for these Gelandewagens has long exceeded Mercedes’ ability to produce them,” he said. “As such, low-mileage used G-Wagons can easily fetch six-figure price tags rivaling or surpassing the cost of a factory order.”
The 2024 model starts at $143,000, but most of the gently used 2023 models currently listed on Carfax are selling for more than $175,000, with the majority commanding prices over $200,000.
Chevrolet Silverado 3500 Diesel
Trucks are expensive vehicles, and those with powerful, economical and specialized engines can hold their value well enough to outprice comparable new models.
“Diesel trucks cost more to begin with and retain their value better than gas engine trucks, because they’re more durable and statistically can reach higher mileage,” said Melanie Musson an auto expert with AutoInsurance.org.
As proof, she cited the Chevy Silverado 3500 diesel, which starts at $43,400.
“A 2022 Silverado 3500 Diesel will cost $65,000 or more,” said Musson.
A quick Carfax search proves that reality, with many diesel packages listing in the high-$60,000s and into the $70,000s.
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