Used Car Sales Rise, Making it a Good Time to Trade In
Shopping for used cars in Cincinnati, Ohio, is one of the best ways to save money on a quality vehicle.
As the automotive industry has continued to rebound after the economic recession, the average price of a used car has risen in pace with the price of new cars. However, even with the higher prices, used cars are still the better buy.
According to Edmunds.com, the average price of used cars in Cincinnati, Ohio, and throughout the country rose to a record $16,800 last year, up from $15,900 in 2013. Much of that price was fueled by newer vehicles that were coming off three- or four-year leases.
Certified pre-owned vehicles took up another huge share of the used car market, selling 2.3 million units, or 21 percent of the market. Certified pre-owned vehicles are refurbished models that come with a limited warranty, making them the next best thing to buying new.
Edmunds said that prices of cars that were 1 to 4 years old rose about 5.7 percent, keeping pace with the overall used car market. Prices of cars that were 8 years old rose 8.8 percent, and prices of cars that were 9 years old rose 8.5 percent. Cars that were 11 years old rose between 10.5 percent and 15 percent.
Lower gas prices and an increase in subprime borrowing options have fueled the sale of older vehicles. Buyers are less concerned with fuel efficiency, making older vehicles possible, and those with spotty credit histories who need subprime loans are more likely to look at lower-priced, older vehicles.
The popularity of leasing has also increased overall prices for used cars. About 27 percent of all new car transactions are leases. For the luxury car market, the amount is 53 percent. When those vehicles are returned, they often become available for sale as used cars.
Industry analysts expect leasing rates to fall toward the end of the decade, which could mean lower prices for used cars, as well.
The stronger used car market means good things for those looking to trade in their vehicles. Since used car dealers can sell these cars for more, they can also offer more when buying. Trade-in values are up, which means more money to pay off debts or to buy your next vehicle.
The stronger used car market also means more selection and options for buyers. No matter how you approach it, a stronger market is better for consumer and better for dealers.
If you are looking for used cars in Cincinnati, Ohio, we encourage you to stop by McCluskey Automotive and explore our extensive selection. We offer some of the best prices on the best quality cars in the area.