These used-car prices result from healthy new-car sales as the economy has recovered. With auto sales and leases slumping in 2008 and 2009, fewer trade-ins and lease returns were available in recent years. Now, motorists who took out a typical three-year lease in 2011 are turning in those cars, boosting used-car inventory and driving down prices.
Reduced rates for used car models
Buyers are relieved that used cars now cost less than new ones, the way it ought to be. The recent recession brought the prices of new cars practically to the level of used ones. This was because dealers and manufacturers, in an effort to move the new models, lowered the sticker prices on them, with low-interest deals. In contrast, used cars were selling at high prices at that time, with high-interest rates on loans.
Driving a hard bargain
According to the article, compact cars did not do so well, with sales declining 3-4% from last year. Sales of midsize cars were down 1.1% since the third quarter of 2014. SUVs and crossovers did not fare any better for the same period, with sales down 1.5%. The only bright spot is the pick-up truck category, whose sales were up 6.5% since the 3rd quarter of this year.
This should serve as a valuable lesson for anyone planning to purchase something in a market-driven category. Pay close attention to market conditions and make your move when the timing is perfect. Used car dealers like Xtreme Motors, which carry most major brands of used cars, can provide models that command the best prices at the moment. As they say, timing is everything, so make sure you get a used car for sale in Indianapolis with the right specs and the right price, at the right time.
(Source: “Used cars are a good deal again”, 17 October 2014, CBS Money Watch)