Understanding the Surge in Used Car Prices Is Now the Perfect Time to Sell?
1. Why is it currently a favorable time to sell a used car?
– The tight supply of used vehicles, as people are holding onto their cars longer, has driven up prices to their highest levels in at least 16 years. Dealers are paying an average of $11,660 for a used car or truck, up almost 30 percent since December 2008.
2. What are some reasons behind the dramatic increase in used car prices?
– The increase in used car prices is a result of several factors, including the extended ownership period of vehicles since the recession, limited availability of used cars due to reduced leasing during the 2008 financial crisis, and disruptions caused by events like Japan’s earthquake and tsunami.
3. Is it still financially sensible to buy a used car given the current market conditions?
– According to auto analyst David Whiston, the rising prices for used cars have reached a point where it may no longer make financial sense to buy them, as it’s often possible to buy a new car for just a slightly higher price.
4. How are some individuals taking advantage of the high demand for used cars?
– People like Jeremy Barnes are capitalizing on the high demand for used cars by selling their vehicles at attractive prices. In his case, he’s asking $15,200 for a 2007 Accord with 47,000 miles in good condition, which has garnered interest as he shops for a new vehicle.
5. Are there any expectations for the future of used car prices?
– Tom Webb, chief economist at Manheim, predicts that used-car prices will continue to rise for around two more months and then level off. However, they may start to decline in 2012 and beyond as more used cars come onto the market, especially as a result of the increased prevalence of leasing and loosened credit for new car buyers.
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When to Buy a Car for the Best Deals Timing and Tips for Savvy Shoppers
1. How has the car-buying experience changed in the age of the Internet?
– The car-buying experience has evolved significantly due to the Internet, with a shift towards customer satisfaction and away from intimidating sales tactics based on sticker prices.
2. What is the best time of the year to get a good deal on a new car purchase?
– The best times to find deals on new car purchases are during the last quarter of the year, specifically late October, late November, and late December. These periods coincide with dealerships’ sales quotas and incentives.
3. Why is the end of the year considered a prime time to buy a new car?
– Dealerships strive to meet manufacturer sales objectives and quotas, which are typically measured on a monthly, quarterly, and annual basis. Towards the end of the year, dealers become more willing to offer deals to reach these goals, making it an advantageous time for car buyers.
4. What are the trade-offs between buying a car at the end of the year for a better price and waiting for the newest models to arrive?
– Buying at the end of the year can lead to better pricing due to manufacturer incentives but may result in a reduced selection as dealers aim to clear existing inventory. If getting the latest model is a priority, it might be better to wait until February or March when new models are introduced.
5. Are there any special programs or incentives, like lease buyout programs, that can benefit car buyers in the last quarter of the year?
– Some dealerships, including Bob Johnson Chevrolet, offer lease buyout programs to facilitate year-end sales. These programs may cover the last six months of a buyer’s current lease, even if it’s not a GM vehicle, making it an attractive option for those looking to purchase a new car.
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