Why new cars so expensive?
The piece of paper is returned back through a faux-wood desk, accumulating numbers Customer pushed his calculator, wrote a figure, and passed on the car dealer, both thumbs flying over its own calculator oversized, came with his short, written down, and he went back.
Ultimately, dealers and customers were still 1,000 apart on a parked used 2010 Subaru Outback right outside the door, I can not answer your price, said the general manager of the dealership Subaru Boston The client was stunned Dealer was willing to part with a new 2012 Outback for only 1,700 more than the old 1100 more included in financing costs and cheaper insurance Yes, the 2012 was a demonstration of car it came with a reduction but there were many fewer miles and was loaded with options was a surprising introduction to the world upside automotive economics today for consumers looking for a little used car, it is often preferable buy a new one.
We're seeing extremely high levels of pricing almost at all levels for used cars, said Jessica Caldwell, a senior analyst at automotive information company online based in Santa Monica, California A lot of time, if you go to buy a newer used car model, it doesn t make financial sense.
Blame the Great Recession The recent shortage of new car sales in particular in 2009 and 2010, a decline of leasing, and increased demand for used cars has created the tightest used car market at least 12 years the narrow gap between new and used lasted nine months, it could last much longer.
Maybe you would see a kind of pause in used car prices in recent years for late models, said Bruce Belzowski, a researcher at the University of Michigan Transportation Research Institute in Ann Arbor This presupposes as the economy continues to repair and new car sales approaching normal levels in 2006, Americans bought 16 May million new cars and light commercial vehicles in 2012, Edmunds believes they'll buy on June 13 millions.
Prices for used cars are so high that new cars are sometimes cheaper.
Take the Mazda CX-9 Touring AWD SUV with Edmunds When calculated the cost of a new CX-9 with respect to certification, one year old model occasion, he found it was actually cheaper 1020 buy new once it has figured in financing costs over the five-year loan term new Mazda2 Sport Hatchback was 480 cheaper than its one year old version Several other cars are close to their rival versions a year see table.
Over the past seven months, the average price of a year old used car was less than 12 percent cheaper than a new car, according to the National Association of Automobile Dealers NADA in McLean, Virginia reducing there are three year-olds 16 7 percent.
New car prices are rising, too After a decade of producing too many cars, car manufacturers have done a better job of keeping the production according to the demand, said Laurence Dixon, auto analyst at NADA gives dealers more power price generally, when the supply of new cars is in line with demand, reducing the average used car is about 13 percent difference is that so few new cars were sold or leased 2009 and 2010 there are fewer now sell used light trucks and large sport utility vehicles are particularly in short supply, he said.
So what Sá car buyer to do if con-consumer really wants a car from 2009 or newer opportunity, should the price against a new vehicle to see the presentation, Ms. Caldwell says they should also take into account all the costs if they re finance the car, the interest rate on a new car can be two percentage points lower than on insurance used car for a new car can also be a little cheaper than for an elder.
For buyers who get sticker shock entering a showroom, a strategy would be to look older used cars from, say, 2006 and 2007 models Over three years, it's usually a different game, says M. Belzowski nowadays, older vehicles are not a bad deal because they last longer.
Another strategy is to ignore completely dealers and look for people who sell cars on Craigslist or other online sites or in the classified section prices tend to be much lower if they want to move, they can be willing to negotiate, Belzowski said.
Finally, do not wait for your car to deteriorate to the point where it loses much of its resale value, it adds try to anticipate and buy before you absolutely have to.
Back in the Boston area Subaru dealership agreement hanging in the air A used 2010 or 2012 a new 1100 addition The newcomer with a longer warranty and, probably, two years of service Figures on waste paper were too convincing I bought new.
Why so expensive used cars, used cars, expensive.