[Norah]

I’m shopping for a used 2021 Toyota Highlander LE in South FL and am prepared to close a deal today or tomorrow.

Out the door pricing looks like an $8-12K savings if I buy used from a dealership. Low miles/still under warranty (was previously leased) with the option to extend that warranty in the future (I don’t plan to do so now).

Assuming this is accurate, does anyone have specific recommendations for what banks and credit unions are offering the best interest rates on a used car these days? Bankrate only had one option (Lightstream) that wasn’t a great rate.

I want to finance for 60-72 months (for the moment, but may pay it off in full after a year from now as I work through some other more immediate financial obligations) and know that rates are likely lower with new, but I have a hard time seeing how the total value of ownership would surpass the $8K+ savings of used in this case.

I’ve been able to haggle some, but there’s so much demand and lack of inventory for this model that the floor hasn’t been far from internet prices. Of course I’d prefer a new car, and have an open mind about it. Eager to hear your feedback.

[Katie]

During the height of the covid chip supply issues, used car prices soared. They have since come down. Get the car you want and can afford, don’t worry about what other people are doing.

[Golden]

It’s possible a 1-2 year used car might come close to a new car. But buying 3-5 years used car will always be less expensive than a new car. I usually buy used and always at least $10k-15k less than new. Average car depreciates close to 50% after 4-5 years.

[Jason]

Unless the car is a business asset, in which case a lease or loan might be justified, paying cash is the way to avoid payments.

[Author]

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