The GMC Yukon XL is a better deal as a one-year-old used vehicle than brand new, according to a recent study conducted by automotive research firm iSeeCars.
iSeeCars says it analyzed vehicle asking prices from over 2.6 million new and used cars sold from August 2020 to March 2021 and used this data to identify the 15 vehicles that have the largest price difference between new and one-year-old used versions of the same model. This data which vehicles lose the highest percentage of their original resale value in just one year’s time and are thus a better deal when lightly used versus new.
The GMC Yukon XL was, on average, $22,639 cheaper as a one-year-old used vehicle than brand new – representing savings of 27.8 percent. The base price of a brand-new 2021 GMC Yukon XL in the entry-level trim is $55,395, including a $1,695 destination fee.
According to iSeeCars Executive Analyst Karl Brauer, many large SUVs like the GMC Yukon XL have poor residual values due to their high base price. A one-year-old 2020 GMC Yukon XL may also experience an even higher degree of devaluation due to the introduction of the next-generation 2021 GMC Yukon XL, which has undergone a complete redesign.
“Full-size SUVs like the GMC Yukon XL generally drop significantly in price given their high starting prices, and the Yukon XL’s 2021 redesign may cause used prices to drop even further,” Brauer explained.
While it seems obvious that a lightly used vehicle would be a better deal than a brand new one, some vehicles hold their value extremely well, making buying new a good idea in certain circumstances. The Tesla Model 3, for example, is just $923 or 2.1 percent cheaper as a one-year-old used vehicle. In this case, most buyers would rather spend the extra $1,000 or so to get a brand new vehicle.
“While lightly used cars typically provide cost savings over their new versions, sometimes buying a new version of the car is a smarter financial decision, especially for consumers taking advantage of the lower finance rates that typically come with new cars,” Brauer said.