Why are new cars almost the same price as used cars?

Question

I am shopping for a Civic Coupe 2001, but they are only 4-5 thousand dollars cheaper than the brand new Civics!!! What is going on?? These cars are 6 years old!

Answer 1

It only seems that way. Understand that new cars must have a Maroney label, MSRP, by law. The hands of the dealer are tied. Used cars have no such laws regarding pricing. The sky is the limit. So, they ask for the sky! A saying in the business is, "There's an *** for every seat!". Some idiot may pay the stupid price. Most new cars have a mark up of less than $2000. Most used cars are marked up over $4000! Any salesman would rather sell a used than a new because the commission they are paid is based on profit, NOT selling price. Be smart, bring a seasoned negotiator with you.

Answer 2

well, a lot of them have been modified, meaning tuners looking for a clean slate (aka a stock model) to work with have a limited selection.

Also, most Civic owners tend to drive the car until the wheels fall off, so modern Civics with low miles are in high demand, further driving up the price.

Most of the time, if you're looking at a Honda that's been made in the past 5 years, then it's typically better to just spring for the extra $$$ and get the brand new one, due to the ridiculous resale on Hondas.

Answer 3

The value of anything is what a willing buyer will pay, and a willing seller will accept. The laws of supply and demand mean that the market will determine the price.

Demand now exceeds supply with used Hondas, so the price is higher.The Civic is a popular car, especially with younger people who like to modify them. Add to that the fact that a lot of Civics have been modified (Tuner cars) which further reduces the pool of available clean used cars. Many people with Hondas drive them for 150,000 miles or more, rather than trading them in, so again, you have reduced availability of used vehicles.

Prices on any car with good gas mileage are up right now. The Civic falls in that category as well, adding to the market price!

Answer 4

There are several answers to your question.
A. The resale value of Honda is very good, they are known for lasting a long time if properly taken care of.
B. The automotive market sucks right now due to the high price of fuel. This has caused a slump so to speak in the auto industry causing manufacturers to lower prices and "Give great deals" to increase sales.

Answer 5

supply and demand.