However, that isn’t always the case in buying a used car from a dealer. When car sales aren’t robust, and they haven’t been very robust, dealers will often take used cars in to facilitate a sale on a new car to move inventory. They don’t always make a lot on the used cars they sell. The margin can be thin at times.
My understanding is just the opposite, at least as of a few years ago (the last time I had good information about the books of a car dealership): The margin for dealers on new cars was razor-thin, and most of what they made off new cars came from accessories, financing, and servicing. And from reselling the trade-ins. Used cars can be really profitable. In my area, at least, there are a number of dealers who were cut by their manufacturer a few years ago who have thrived as used-car-only dealers.
It’s possible that the contraction of the majors’ dealership networks, and the explosion of on-line used car markets, has changed that pattern in the last few years.
[I have had a Prius for the past 8 years, and my wife has had a (now discontinued) Prius C for 7 years. We pretty much love them. My car hasn’t been perfect – it goes through tires and headlamp bulbs, and, yes, it has the pickup of a mule train unless you remember to hit the PWR button. It isn’t a four-wheel drive vehicle. But ours has driven through plenty of storms and down lots of dirt roads (sometimes slowly and carefully) in federal and state parks and other land preserves.]
For things like the cost to insure, the cost of ownership, decreased value over time, etc, edmunds.com has been a great resource.
When buying a car, it is important to consider the warranty.
For my Prius Prime (a hybrid), I bought a 10 yr, 100,000 mile warranty just because parts to repair will likely be pricey. So far I’m happy. I bought it new, Dec 2018. Could only find it new in our state.