A dealership salesperson recently took to TikTok to warn viewers against buying a new car.
JRod (@jrodsellscars), a popular TikToker who shares his experiences as a car salesperson with his viewership, garnered over 67,000 views when he posted a short clip explaining how fast new cars depreciate, using a 2023 Hyundai Genesis as an example.
“I have a 2023 Genesis on my lot that was $53,000 brand new,” J Rod said. “After one year and only 12,000 miles of driving, the car depreciated all the way down to $35,000.”
Instead, J Rod suggests that people who are shopping for cars look for pre-owned options instead of brand-new cars.
“You can actually save so much money. That first owner depreciation is no joke,” the dealership salesperson said.
Buying a new car versus a used car
An article from Car and Driver compares the advantages of buying a new car versus a used car.
Advantages of buying a new car include being able to tailor-make a vehicle to your own tastes, having no unknown surprises like smells or damage from previous owners, newer safety technology, up-to-date navigation and entertainment systems, and buyers receive “lower financing rates on new vehicles because the vehicles are inherently worth more and have not already been hit by depreciation.”
Another advantage is a new car warranty, but the article also mentions how certified pre-owned cars also have warranties since they are lightly used vehicles around two to three years old.
For a used car, price is the major selling point. According to Car and Driver, cars have “the steepest decline” in value in the first year, with some models losing “40 percent or more of their value in the first year.” Additionally, buying a used car can allow drivers to upgrade to better vehicles than they may be able to afford if they get a car fresh off the lot. Insurance also “tends to be less expensive” for used cars.
@jrodsellscars First owner takes the biggest hit 🫠 #carsalesman #approved #dealership #carbuyingtips #jrodsellscars ♬ original sound – jrodsellscars
Why certified pre-owned?
According to Kelley Blue Book, a certified pre-owned car is a vehicle that has passed a comprehensive inspection and is usually “only a few years old and has less than 60,000 miles.”
For a car to receive the certified pre-owned designation, the vehicle must be in “excellent mechanical and cosmetic condition,” have a low number of miles and undergo a reconditioning process that consists of repairs to the paint and body, mechanical components, and the interior.
Though many used cars are in “excellent condition on the market,” a certified pre-owned vehicle is a pre-owned car backed by the manufacturer and comes with a warranty.
What did the viewers think?
Multiple viewers agreed with J Rod and suggested buying certified pre-owned cars.
“Certified pre owned with warranty is the way to go!!!” a viewer said.
“CPO for the win,” a second agreed.
“That’s why hate buying new I like certified pre owned but it’s easy to throw negative on new,” a third responded.
“Never buy new. Let someone else eat the depreciation,” another added.
Others disagreed and claimed the issue was with the type of car and not with new cars in general.
“I bought a 2023 Toyota Tacoma for 38k and I have had offers from dealers this year for 36k with 15k miles. Not all cars depreciate that much. Just have to be careful,” a viewer wrote.
“Blah blah blah I’ll buy a new car all day every day!” a second said.
“The key to buying a new car….you have to keep that car for a minimum of 8 years,” a viewer advised.
“Don’t buy cheap valued cars,” another stated.
The Daily Dot reached out to J Rod via TikTok Comments and Hyundai via email.
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