Whether you are in the market to sell a used car or looking to buy a vehicle, there are a few things you should know about the car market. Here are three crucial facts that could save you thousands of dollars down the road:
1. Cars Depreciate Really Quickly
Oftentimes when you buy a vehicle, you think about resale value; something you should be aware of is just how quickly that resale value can go down. Cars have been known to depreciate by as much as thirty percent in just two years after their release, which can be a big discount to a buyer or a big loss if you planned on reselling it. Be careful of how much you spend on brand new cars, because you might not see as big of a return down the road as you might expect!
2. Used Car Sales are Going Up
Since prices are so much lower on even slightly older cars, people are naturally attracted to used cars, and that shows in the sales statistics regarding people who buy and sell used cars. Sales on used cars rose by half a million between 2012 and 2013, increasing to forty one million vehicles sold in the latter year. That is a serious trend that has no reason not to continue in years to come, so while you may not have full resale value on new cars a few years later, finding buyers when you go to sell used cars should not be any issue.
3. Most Cars are Bought for Efficiency
While there is a big advertising trend in the United States toward big trucks and muscle cars, it seems like a lot of people think that the best cars to buy used are sedans. One reason sedans may be the best cars to buy used is the gas economy, which is traditionally lower, as well as the economic balance between performance and space. In any case, more than half of used cars sold in the United States have been sedans. Whether folks are buying used cars on finance or out of their own pocket, heading to a mainstream dealer or searching “where can I buy used cars” on Google, people recognize the merits of the sedan and tend to prefer it. What do you think about these used cars? References.