Used cars in Indianapolis, and in other parts
of the country, have been an affordable option for people who want to have
their own cars but lack the financial resources to buy new ones from
dealerships. Recent years have seen rising prices for pre-owned vehicles
primarily driven by the huge demand recession has brought, but based on The
Wall Street Journal’s Christina Rogers and Mike Ramsey’s interview with
automotive analysts Jonathan Banks, used car prices are expected to go down
this year:
"Prices rose 18% from 2007 through 2013, with
U.S. customers paying an average of $14,685 last year. Americans bought about
42 million used vehicles, nearly three times as many as new cars sold.
But in 2014, the year-over-year rise is
expected to come to a halt with used-car prices expected to fall about 1%, Mr.
Banks said.
A fall in prices has been expected as used
vehicle prices have remained at historic highs for several years. Indeed,
prices stayed higher in 2013 than some had expected. "
This
impending decline is expected to be attributable to the return of leased
vehicles by Americans who are now ready to purchase brand new ones instead. Those
who would still prefer to buy pre-owned cars, however, will certainly benefit
from this, as it means more cars in later models will be available for a lower
sales price.
Buying Indianapolis used cars do not only mean
cheaper cost for relatively new models, it also means potential, substantial
long-term savings and lesser depreciation amount since car value declines
faster on its first three years. Another consideration in buying pre-owned is
that insurance rates are higher for new cars.
People
have also noticed that increased reliability have made used cars very
attractive to buyers. Improvements have been carefully documented by various
consumer reports, while some pre-owned vehicles even have Certified Pre-Owned
Vehicles mark to show that vehicles have passed a stringent safety and
performance inspection.
The
resulting savings from buying used cars instead of brand new units can then be
re-allocated to other far more pressing financial matters, such as making
advanced payments on mortgage, or contributing to their 401Ks.
Buying
quality pre-owned vehicles from trusted used car sellers, such as Xtreme
Motors, can help many Americans reap the benefits of getting a reliable car at
affordable prices and, subsequently, earn enough savings to use for settling
other obligations or making investments for the future.
