The demand for smaller used cars is extremely high, which is not the norm. Most people opt for larger used vehicles that tend to be considered safer with lower auto insurance rates. However, this is not the case for the current market.
However, it is not too surprising for experts. They compare this increase in small used car sales to the summer of 2008 when gasoline prices soared. Sounds familiar for summer 2018 right?
The consequences of this change in the market is that auto companies are reducing their production of new and small cars. Low supply increases demand for the small number of new and small vehicles that are available, which means that customers must bid more to obtain the vehicle.
This is how the market moves, as used car sales rose 2.2 percent, a 13-year high. That also means that small vehicle prices should actually rise 3.9 percent. It is simply the way to play in the market.
There has also been an influx of out-of-leasing cars flooding the market that, as the other numbers show, out-of-leasing cars are very easily absorbed. People seem to be looking for used cars for basic transportation. Another reason is that the hurricane and flood victims of the previous storms are using their insurance money and it is all they can afford.
There are also other benefits of saving money when buying used cars, here are some.
By buying a new one, your car can depreciate up to 50% in three years, which means losing a lot of value. When you buy used, you don’t have to worry about the cost of depreciation.
More value for your money
Without having to worry about depreciation, you leave more room in your budget for a better equipment or even a better model than you would get if you were buying a new one.
Only 350 different models are offered in the new car market per year, but there are many more options in the used market, which is good news if you can’t find your dream car in the new market. This means that you don’t have to settle or pay more just to settle for a vehicle that you are not completely satisfied with.
Your auto insurance is based on the value of your car, making it less expensive with a less expensive car. With new vehicles, they are more expensive, therefore insurance is more expensive, except then you must deal with depreciation for the next three years, no matter how well you maintain your vehicle.
Cheaper registration fees
Depending on their location, older vehicles generally cost less to register, which is definitely a plus.
If you are considering buying a used car, especially a small one, now is the time to do it!
Article Source: https://EzineArticles.com/expert/Ted_Quinn/2578364
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