Tuesday, June 10, 2014

Consumers to Benefit from Lowering Prices of Used Cars in Indianapolis

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.

(Source: U.S. Used Car Prices Expected To Decline This Year, Christina Rogers and Mike Ramsey, January 25, 2014)

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