Outside of buying a home, purchasing a vehicle is likely one of the largest most people make in their lives. And while the options when it comes to car types and values vary greatly from less-than-$10,000 “vanilla” vehicles to six-figure street-grade race cars, most of us opt for middle-grade compact cars, sedans, and SUVs with middle range price tags that run from $20-$40K or maybe cheaper if your browse the deal at this car dealership near groves.
However, buying a “gently” used car or truck can save buyers thousands while still providing a modern look and long lifetime. You can check it out on used car dealership in Mayfield with best reviews!
However, like any other purchase, your ability to save money when buying a used car varies according to the market. Key elements such as supply and demand and general attitude affect the average cost of used as well as new vehicles, directly impacting the bargains you can find. In 2016, this market is about to take a different course, one that the cost-conscious car buyer will no doubt appreciate.
Why You Should Buy a Gently Used Car
The benefits of buying a “gently” used or used-but-not-abused car are many. First, however, it is important to note what the term gently used means. In general, these cars started out new as leased vehicles belonging either to private people or corporate fleets. They have two, important characteristics that greatly add to their value:
- They are at least 2, but no more than 3 years old
- They have less than 30,000 miles
The benefits of buying these cars, trucks, and SUVs, are pretty clear. Because they are between 2-3 years old, they have already suffered their greatest loss of value. In addition, as used vehicles, they are not subject to the same purchase fees, which, combined with devaluation, cost owners thousands of dollars in the first years of car ownership.
At the same time, because they aren’t too old or worn and because, as leased vehicles, they had a mandated maintenance schedule, used cars from reputable dealers like https://www.zemotor.com are still in excellent condition. This often means that the car has years of reliable service ahead of it, yet is offered for sale at a fraction of its original cost.
In addition, if you are lucky enough to find former corporate fleet vehicles, these used cars generally qualify for a certified pre-owned (CPO) designation. This affords owners additional benefits including maintenance and warranty coverage.
2016: The Year to Buy Used
2016 is a significant year for car buyers looking to cash in on the value of gently used cars because the market is set to start expanding exponentially compared to prices one year ago. In fact, the end of Q2 2015 saw used car prices rise to their highest on record, with an average price of $18,600, which was 7.6% higher than the year before. However, according to the NADA Used Car Guide all this will change in 2016 as thousands of leases, many of them corporate, come to an end, flooding the market with over 800,000 gently used cars in the next three years.
In stark contrast to the 2015 numbers, used car prices are set to decrease at a rate of 2.5% per year through 2018, bringing prices to levels we have not seen since 2010. This gives buyers now and in the foreseeable future a great selection and favorable market that makes an already-good deal even better.
What to Expect on the Used Car Market, 2016-2018
Among the most common cars buyers will see available in the next three years are compact and subcompact cars. Not only are these smaller cars popular among corporate fleets, but many people opted for them over larger “gas guzzlers” back when gas prices were high. Also, mid-sized sedans along with SUVs of all sizes will be widely available since they are popular among young families who are also more likely to lease.
In terms of brands, using 2013’s top lease deals as a determiner, the best (and most utilized) lease deals came from diverse dealers, but were lead by favorites such as Chevrolet, Honda, and Nissan. Then, in 2014, an uptick in 2-year leases happened at both Toyota and Chrysler, while a reduction of such short-term contracts took place at Ford and Nissan.
Luxury cars are also possible among the mix of CPO vehicles especially. Makers such s BMW, Lexus, and Mercedes-Benz all have attractive lease programs and strong CPO attrition. While decidedly more expensive than their moderate-priced counterparts, opting for CPO versions of these high-end brands is an easy way to enter the luxury car market without overspending.
Making the Most of Your Used Car Purchase
With such a huge supply expected to flood the market, automakers and hence dealers will have to slash prices and give incentives to move their inventory. GM actually already started, announcing a new sales program focused on “factory owned” used cars available online to buyers across the country. Many other makers are likely to follow suit.
Staying local can also pay, especially if you are close to a large market. An astute buyer can really cash in when a particular dealership receives and influx of used cars, especially if he or she is ready to buy with financing in place (if needed).
Regardless of your buying plan, it is important to stay abreast of the prices among your local dealers as well as nationwide trends. Monitor prices on used car sites and national marketplaces like eBay Motors and Cars.com. It may even be helpful to talk to salespeople about the flow of inventory at their dealership, such as at https://www.conklincars.com/newton-ks-car-dealership/. If you develop a relationship and help them make a sale, they will be more likely to alert you to times when the dealership expects a spike in off-leases that may drive prices down even further.
