Shoppers of used cars will be very happy to know the good news, thanks to new car buyers.Thanks to trade – ins and better auto financing opportunities, it seems that the growing market in brand new cars will have a favorable impact on the prices of used ones. With a four – year low in 2013 prices, buyers of secondhand vehicles are expected to grow in number as the prices are seen to decline next year.
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Four – Year Low in 2013, and Maybe Lower Next Year
As the demand for brand new cars increases, the price of used cars decreases. It even hit a four – year low this year, and is expected to go lower next year as trade – in cars overflow dealer lots. In the third quarter of this year, used cars have sold an average of $15, 617. According to Edmunds.com, this is the lowest price since the same quarter in the year 2009 for an average of $14, 808.
Reasons Why the Prices are Dropping
Do you want to know the reason behind this good news? Here they are:
- Off – lease cars: Since the recession in 2010, dealers offered cheap lease options to drivers who were hesitant to pay for the purchase price of new cars. The leased cars are now being sold as used cars as an impact of the recession.
- Growing Sales of New Cars: Dealers of brand new cars are expecting to exceed 15 million in sales. This means that the trade – in will further flow in, giving used car buyers a deal of their lifetime. Dealers will have to cut the prices in order to get rid of these overflowing used cars in their lots.
- Progressive Economy: Drivers who have held on to their cars during the recession are now ready to let go for the brand new models. The improving economy resulted to lower unemployment rates, making it easier for people to afford a used car. Not to mention the better loan rates.
Hop Inside and Give it a Test Drive
While used car prices are expected to go lower due to the rise in new car sales, it is still important to give these secondhand cars a test drive. Hop in, adjust the seat and mirrors, and begin checking the car to know its real condition. Bring along your music player to see if it’s compatible with its audio system and if it works. You can bring an experienced mechanic to test drive with you and watch out for any clacking, squealing or rumbling.
Don’t Forget the Fair Value
One important tip to bear in mind is to never forget your homework. Make sure to do some research on the fair market value of the used car you are considering. Have an experienced mechanic to inspect the car before sealing the deal. If this is your first time to purchase a used car, you can also consider looking at certified pre – owned car models. These cars have gone through more rigorous inspection and have warranty. Ask for any incentives that will help you save more money.