Used car vs new car prices

Lott argues that it is only a common myth that a new car loses 15% - 25% of its value when it first leaves the lot.

He backs up this argument through analysis of new and certified used car prices using manufacturer MSRP; Kelley Blue Book New, Used,Excellent Condition Trade-in, and Private Party prices; and Yahoo! Auto Certified Used prices for 55 certified used cars (15 with less than 5,000 miles and 40 with about 15,000 miles).

Lott demonstrates that the cars with 15,000 miles on them (about a year's worth of driving) are substantially less valuable than the relatively new cars with less than 5,000 miles.

A few of the cars with less than 5,000 miles were actually worth more than MSRP.