The impact of the used car market on you
It’s no surprise that there are more used cars making up a larger portion of the overall vehicle market than brand new cars. Over the past two years alone, used car sales have risen from 39.2 million in 2017 to over 40 million in 2018. There are a number of economic impacts that have lead to this steady rise in the purchase or short-term loans of used vehicles, but how do these numbers affect the person looking for a used vehicle now? We’re here to shed some light on how the used car market can impact your next in-house car loan.
Higher Demand means Higher Prices
In the wake of stagnating wages over a rise in the cost of living, there are many economic trends indicating many consumers have become more frugal and more conscious of investing in better, cheaper deals. This logic has extended itself to the world of used cars. As the rates of used car loans increased over the years, its demand has had an impact on slowly rising prices for used vehicles. This trend is likely to continue as rising costs have, as of yet, negatively impacted the average consumer who is willing to pay a little more for an ideal used car overpaying even more for its brand new counterpart.
The Impact of Rising Costs of New Cars
The used car market isn’t the only market with rising price-tags. Although, its rates are not escalating nearly as fast as the used car market. Over the past seven years, the average price of a new vehicle has increased by 7.7%, compared to the used car market with an average increase of 14.8. Despite this number nearing double the rate of the used car market increase, the used car market is still a better value overall, with most used cars being at least $10,000 cheaper than their newer counterparts, and will still be a better deal to the more financially conscious car consumer.
Timing is Everything
It’s a familiar adage and its one that is befitting to the often capricious nature of rising and falling costs of used vehicles. Sometimes, choosing when to take on an EZ loan isn’t an option for purchasers seeking an immediate need for a used car. But if the luxury of choosing when to buy your car is on your side, used vehicles are the cheapest during the last quarter of the year. Most dealers are motivated to create better deals to entice consumers who are busy with holiday shopping, or those looking to purchase a very generous gift on four wheels!
If news of the increased demand and rising prices of used vehicles has you concerned, you have nothing to worry about when purchasing a used car at CarLoanUnlimited.com. All credit types are accepted as we offer no credit check auto loans, EZ car loans, and low-price down payments from $500 down. Drive Today in your affordable used car by visiting our Orlando/Longwood or New Smyrna Beach locations
