You may have been searching for an affordable vehicle, wishing to spend your hard-earned cash on other amenities, rather than a new and expensive car. Thankfully, you are in luck if used cars appeal to you. According to Time magazine, used car prices have declined precipitously since the Great Recession of 2008. For car buyers looking for cheap vehicle maintenance, this may be great news.
Coming years will bring increased number of used cars to market
According to Automotive News, the years immediately after the recession were calamitous for the auto industry, due to a lack of buyers amid a poor U.S. economy. However, according to the source, recent trends have shown that the negative impact of the recession is starting to wither, while used cars are beginning to rebound on the market. For example, the source predicted, based on the analysis of Mainheim Incorporated, that the number of used cars available on the market will significantly increase by 2016, up to 3 million from 1.7 million in 2013.
This should be attractive news for car consumers passionate about seizing the opportunity that this deluge of used cars offers, as the increased prominence on the market will result in car dealers selling the cars for more affordable prices. The prices of various other items required to keep a car running smoothly - such as brake repair - should bring many consumers to dealerships seeking used cars.
More cars on market means cheaper prices
Time cited Edmunds.com, which clearly thinks that prices will decline due to the rapid amount of cars being placed on the market. According to the source, prices for used cars may decline by two percent this year. This is a significant figure, sure to be appealing to auto buyers concerned about the price of everything from an oil change to scheduled maintenance.
"Many car shoppers might not realize how much the new- and used-car markets feed off each other," said Edmunds.com Senior Consumer Advice Editor Philip Reed. "The boom in new car leases, for example, is leading to a higher number of lease returns, which adds to the growing inventory of used cars, forcing their prices down."
However, this excellent news is not without caveats for car buyers. Edmunds.com noted that cheaper used cars may still carry higher monthly payments, so the car dealership is not making less money than they would if the used cars were the same price that they were a few years ago.
Despite this news, Edmunds.com seems to think that there are many reasons to be optimistic about a greater number of used cars on the market. For one, the source noted that this will grant car buyers a greater selection of cars to choose from, whereas this selection would have been diminished in the past if prices remained high. Those looking to invest in other aspect of their cars, like car air conditioning service, may find the vast selection available in the coming years amenable to their tastes and car-buying budget.
Time noted that this boon of used cars is due primarily to the effects of the economic weakness in the U.S. which led many people to purchase used cars. This in turn made used cars more expensive and harder to obtain as they were highly sought after. However, the source noted that the market has calmed down in recent years, growing more stable and healthy. Thus, it may be the perfect time to invest in a flashy used car!