The demand for used small cars is very high and this is not the norm. Most people go for larger used cars which tend to be considered safer with lower car insurance rates. However, this is not the case for the current market.
However, it is not very surprising for experts. They compare this increase in small used car sales to the summer of 2008 when gas prices skyrocketed. Sounds familiar for summer 2018, right?
The consequences of this change in the market are that car companies reduce their new production of small cars. Decreased supply increases demand for the small amount of new small cars available which means that customers must bid higher to get the vehicle.
That’s how the market has been moving since used car sales rose 2.2 percent, the highest level in 13 years. This also means that prices for minivans should actually go up 3.9 percent. It is simply the way to play the market.
There has also been an influx of non-rental cars flooding the market which as other numbers prove, non-rental cars are sucked in very easily. It seems that people are looking forward to used cars for their primary mode of transportation. Another reason is that victims of hurricanes and floods from previous storms use up their insurance money and that’s all they can afford.
There are also some other money-saving advantages of buying a used car, and here are some of them.
Consumption
When you buy a new car, your car can depreciate up to 50% in three years which means losing a lot of value. When you buy used, you don’t have to worry about the depreciation cost.
More value for your money
Without having to worry about depreciation, it leaves more room in your budget for better equipment or even a better model than you would go for if you were buying new.
diverse
Only 350 different models are offered on the new car market annually, but there are many more options on the used market, which is good news if you can’t find the car of your dreams on the new market. This means that you don’t have to settle or pay more just to settle on a car you’re not completely happy with.
Less insurance
Your car insurance depends on the value of your car which is why it is less expensive with a less expensive car. With new cars, it’s more expensive, so insurance is more expensive, barring that, you have to deal with depreciation over the next three years, no matter how well you keep your car.
Cheaper registration fees
Depending on your location, older vehicles usually cost less to register which is definitely a bonus.
If you are thinking of buying a used car, especially a small one, now is the time to do it!
