Buy low and sell high. It's a cliché we hear all the time, the key to successful stock trading, but we rarely hear this phrase mentioned when it comes to getting the best new car deals. Today, however, people who are dreaming of a owning a brand new truck, and are currently driving a late model 30 mpg car, like a used Mazda 3, can now do just that.
For the last couple of months we have been writing about the rising values of used car prices, particularly used cars with high mpg ratings, as well as the demise of gas guzzling SUV and truck prices.
The fact is that for the first time since we started monitoring used car prices early in 2005, last month pre-owned values for late model, fuel efficient, 30 mpg cars, increased by nearly 10%. This is an amazing statistic since the value of used cars typically decreases over time.
In the following example we'll show you just how much money you can save, excluding fuel costs, by trading in a 30 mpg late model used car, such as a used Mazda 3, and buying one of the best new trucks on the market today, the 2011 Ford F-150. Your saving will vary slightly depending on whether you're a cash buyer or a new truck buyer who will utilize the special new car financing offered by Ford.
First and foremost, you should expect at least a $1,000 premium in value for your fuel efficient used car trade-in compared to the trade-in value you would have received just a few months ago. Next, the combined new car rebates on the 2011 Ford F-150 are up to $3,000 nationally, it may be more than that in specific regions of the country. Currently new Ford truck buyers can also opt for the promotional new car financing rate of 2.9% for 36 months in lieu of $1,000 cash rebate.
Next are new car dealer prices. New car prices are high, near MSRP for 30 mpg cars, and new car dealer prices are low, on less fuel efficient new trucks. Chances are most Ford dealers will be willing to sell their new truck at or near the new Ford F150 invoice price, which is $1,000 to $2,000 below MSRP.
So how much money can you really save by trading in a late model, fuel efficient car, similar to a used Mazda 3, and buying a one of the best new trucks, here's a recap:
$1,000 Trade-In Value Premium
$3,000 Truck Rebates
$2,000 New Car Dealer Price Discount
The main component to getting the best new car deal on a brand new truck is whether or not you can afford it in the short term. New trucks are discounted heavily right now based on the savings outlined above, when compared to fuel efficient high demand new cars. In other words, buying a new truck right now is like getting a $6,000 bonus. What you do with it is your choice. In our opinion $6K buys a lot of gas.