Americans are keeping their vehicles longer than they ever did. That, in turn, is causing used car costs to rise. Many later-model used automobiles are now selling for scarcely less than brand new models. Will you be trying to sell or buy a new or used SUV? If this seems like you, plan a test drive at Gus Johnson dealership. Want to know find out more about Gus Johnson Ford? Look at Gus Johnson Ford.

Used car costs rising

Vehicles are selling for only 11.5 percent lower than brand new vehicles when they are a year old, according to Kelley Blue Book.

A gap that narrow has not been seen since 1998, according to Juan Flores from KBB.

“It’s just crazy,” he remarked.

The gap is really small for some models. A year-old Toyota4Runner SR5 only sold for $254 less than a brand new one in 2012, and, according to KBB, a 2011 Chevy Camaro LR sold for $25,135, a $126 savings.

Loan prices

It is worth it to get a new car rate a ton of times because pre owned car loan rates are higher than brand new car loan rates. You might really pay more on the loan for the used car.

The loan on a 2011 Honda Odyssey cost $7 a month less than a 2012, according to the Detroit Free Press.

Fewer vehicles and more demand

Customers are keeping cars longer and trading them in less, which is why there is an increase in used car prices, according to CBB. The used car dealers do not have a ton of inventory sitting on their lots. In 1997, the average car was 8.4 years old. Now, it is 10.8 years.

Another factor is that some automakers have cut back on production to stay in line with demand. With fewer automobiles being made, the resale value goes up.

The lease industry is almost non-existent at this point.

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Lasting for a short timer

However, some experts do not expect the trend to be a long-lasting one. Tom Kontos, a used-car wholesale auctioneer, told the Detroit Free Press:

"At some point, something has to give."

Flores believes the intelligent thing is most likely to purchase brand new, and take advantage of the timely situation. He said:

“As long as the consumer has not been hiding under a rock, they should get a good sense that the prices of a new and used vehicle are close together and that they should buy new.”

A bargain is a bargain

A bargain is still a good bargain, so it may be a good idea to get an older car still. The new ones are not always the very best.

Consumers ask more about used cars than new ones, according to World Jeep Chrysler Dodge Ram sales manager Jerry Ojeda at Shrewsbury, New Jersey. He explained:

“They’ll still go with a used car to save $20, $30, $40 a month.”


Sources

Daily Record
Poughkeepsie Journal
MSN

 

I have noticed, also thanks to things like cash for clunkers, that there are less used cars out there, especially good examples, and the ones that are out there are much more expensive.

I have been looking for a car for about 6 months and have been astounded at what the market is for cars that are 5-6 years old with 75K miles on them...

Hell, my crossfire has increased in value several thousand since I bought it, that is kind of nice, even though I would never sell it.