Why Buying A Used Car Now Is A Good Idea
In 2014, the sales figures for new cars went through the roof, grabbing headlines and enticing shopper to make their purchases. From an economical point of view, the larger the number of new cars that are sold, the lower the prices of used cars will be. So, as the new car buyers drive the sales up, the used car shoppers have plenty to be pleased about, which for starters is more value for their money.
From a supply-and-demand point of view, people who buy new cars usually have an old one to trade in and will also be selling their new car in the next 5-7 years.
That means all those people who have been buying new cars over the past few years have actually contributed to the supply of used cars, driving their prices right down.
Michelle Krebs, director of automotive relations at AutoTrader.com points out that supply of used cars is also being refilled by a large number of relatively new vehicles that are coming off a lease, which with a low mileage go right into the used car market.
Although used car prices have gone down over the past year, used SUV and truck prices have actually seen an increase of 1 and 3 percent, respectively, reminding the used car buyers to be cautious when selecting their next used vehicle.