A new study conducted by iSeeCars appears to indicate the Cadillac XT5 crossover is a much better deal when purchased lightly used.
This iSeeCars study attempted to identify the cars, trucks and SUVs that have the biggest and smallest price differences between brand new and one-year-old used vehicles. The market research firm analyzed vehicle asking prices from over 2.6 million new and used cars sold from August 2020 to March 2021, using this data to identify the top 15 cars that have the smallest price difference between new and one-year-old used versions of the same vehicle, as well as the 15 cars with the largest price differences.
The Cadillac XT5 was, on average, $14,851 cheaper as a one-year-old used vehicle than brand new – representing savings of 28.7 percent. The base price of a brand-new 2021 Cadillac XT5 in the entry-level Luxury trim is $44,190, including a $1,195 destination fee.
iSeeCars Executive Analyst Karl Brauer says the Cadillac XT5 “hasn’t resonated with buyers like competitive vehicles in the popular luxury midsize SUV category, resulting in big discounts in the used market.”
For reference, the vehicle with the biggest difference between the average new purchase price and average used purchase price was the BMW 5 Series. The luxury sedan was $24,207 cheaper on average than new, representing savings of 36.4 percent. Luxury vehicles make up the majority of vehicles that are a better deal on the used market, with the BMW 3 Series, Mercedes-Benz GLA and CLA, Infiniti Q50 and Q60 and GMC Yukon XL also making an appearance on iSeeCars’ top 15 list.
Unlike the Cadillac XT5, some vehicles are a better idea to buy new as they hold their value well on the used market. The Tesla Model 3 had the smallest difference between the new and used average purchase price at $923 or 2.1 percent, while the Toyota Tacoma pickup was close behind with a difference of $1,557 or 4.2 percent.
“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 explained.
The used vehicle market is on an upswing currently as the COVID-19 pandemic has led to a shortage of new vehicle inventory at dealerships – particularly for in-demand large vehicles like the Chevy Silverado 1500. As such, big trucks and SUVs are holding their value very well second-hand – a trend that iSeeCars expects to continue for the near future.
“The used car market is still seeing the effects of plant shutdowns during COVID-19, which has led to higher prices and shorter supplies of in-demand vehicles like pickup trucks,” Brauer added.