Friday, October 3, 2014

A Little Patience will Pay off for Used Car Buyers

If you’re planning to purchase a pre-owned car, you may want to wait a couple of months. Industry observers have noted that many leases will be expiring, thereby flooding the market with millions of used vehicles. This should effectively bring current used car prices to new lows

New car sales are up

One factor that is driving pre-owned car prices down is the brisk sales of new ones. Given the demand for new cars plus the entry of next year’s models onto the showroom floors, it looks as if car sales will keep climbing until early 2015. Car owners looking to unload their used vehicles will most likely not be able to get the price they want within the next few months. 

 Your lease is up

In the United States, one in four automobiles is leased, especially among the luxury brands. Analysts foresee a lot of used sedans filling used car lots, but not for all types. Light trucks are seldom leased so not many second hand ones will be available.

Examine your options

Trading in your old vehicle for a new one is a viable alternative to selling it outright, but it is advisable to negotiate the price of the old car separately. You may want to set your expectations here because the old car may not be appraised as high as you would like. At the very least your monthly lease payments on the new car should be dramatically lower.

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