Ready to Buy Your Next Auto? Right Now, New Is A Better Deal.
With all of the issues hitting the auto buying industry – high gas prices, recall issues, wounded economy, part shortages – the ability to cut a good deal still exists. But don’t be fooled into thinking that there are no major differences when comparing new vs. used auto options.
Nope, the used auto market has never been more solid…for the seller.
According to used auto trend watcher RVI Group and their Used Car Price Index, used auto values shot up an astonishing 16% in a year-over-year comparison. What is causing this?
The industry’s data providers set forth a number of plausible reasons:
1. Limited availability – With fewer autos being sold over the last several years, there are more pre-owned autos that are still, quite frankly, still owned. The longer a auto remains in use, the less viable it becomes on the used auto market.
2. Less desirable availability – The autos that are being made available for used lots are big engine, big body, low gas mileage SUVs and trucks. Consumers are on the MPG bandwagon, so a drive down dealership row is going to show a lot of used Tahoes, Sequoias and Expeditions.
3. Higher cost on the desirable autos – With consumers turning to high MPG autos, the ones that end up on lots are going for that 16% higher value mentioned by RVI. What does that translate to? According to SmartMoney, a 2008 Ford Focus S that sold for $7,500 in May 2010 now sells for $9,600.
So what do you do? Right now, your best bet is to look at new auto options and drive a good bargain. With dealers still in “sell, sell, sell” mode (as opposed to “make top dollar” mode), you have a great chance to buy a really good new auto without having to break the bank.
If you feel you must buy used, scour the want ads, check out an auction…kiss a lot of frogs.
But for now, new is going to be the better deal. Check out this section of AutoBuying101.com to research new autos>>