Many later-model used cars are priced only slightly less than similar brand new ones, states Kelley Blue Book. That is because motorists are driving their automobiles longer, which is keeping supplies low. Have you been looking to buy or sell a new or used Spokane Ford Focus
? If this could be you, schedule a test drive at Gus Johnson dealer
.Costing more for used
Automobiles are selling for only 11.5 percent lower than new cars when they are a year old, according to Kelley Blue Book.
A gap that narrow has not been seen since 1998, according to Juan Flores from KBB.
“It’s just crazy,” he remarked.
There is only a $126 savings with a 2011 Chevy Camaro that sold for $26,135, and a 2011 Toyota4Runner SR5 sold for $254 less than a brand new one, according to KBB. In some places, there is hardly a gap at all.
Rates on loans
It is worth it to get a new car rate a lot of times because pre owned car loan rates
are higher than new car loan rates. You might really pay more on the loan for the used car.
The loan on a 2011 Honda Odyssey cost $7 a month less than a 2012, according to the Detroit Free Press.Fewer cars and more demand
The cause of the increase in used car costs, states KBB, is that the supply of late-model used vehicles has shrunk among the country's used car dealers. In the tight economy, consumers are keeping their vehicles longer and trading them in less frequently. The average age of an automobile on the United States highways is now 10.8 years. In 1997, it was only 8.4 years.
When car manufacturers make fewer automobiles, the resale value goes up as well. This is another factor because a ton of car makers have cut back on production to keep with demand.
The lease market is almost non-existent at this point.
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Without Delay!Short-lived trend?
However, some experts do not expect the trend to be a long-lasting one. Tom Kontos, a used-car wholesale auctioneer, told the Detroit Free Press:
"At some point, something has to give."
Right now, it is most likely a good idea to just buy brand new and take advantage of it, according to Flores:
“As long as the consumer has not been hiding under a rock, they should get a good sense that the prices of a new and used vehicle are close together and that they should buy new.”Sometimes a good deal
A bargain is still a good bargain, so it can be a good idea to get an older car still. The brand new ones are not always the very best.
Jerry Ojeda, sales manager at World Jeep Chrysler Dodge Ram in Shrewsbury, N.J., said that his consumers still inquire about used cars more often than brand new ones. He said:
“They’ll still go with a used car to save $20, $30, $40 a month.”SourcesDaily RecordPoughkeepsie JournalMSN