Used cars have not always been a good deal ever since the 2008 recession happened, but a lot of car shoppers in some towns in the United States have discovered that it is a lot easier to sell used cars compared to brand new cars. Depending on the location of the dealership, the price of used cars that are shown on the dealership’s lot, or even vehicles that are posted in listing sites like Craigslist can be more expensive compared to cars that sold on the other state or side of the country.
Supply and demand, as well as the entire economy of the country, means there can be a better discount or deals a few miles away or on the next state or city. The United States automobile industry reached at least 15 million vehicle unit sales a year before and reaching 10 million-unit sales this year. It is still way below the 17 million it sold way back in 2001.
(To know more about the automobile industry in the United States, visit https://www.selectusa.gov/automotive-industry-united-states.)
New car sales have increased by 4% a year, but second-hand cars are still a very hot commodity as a dealer are still recovering from the country’s economic fallout, they experienced during the recession and as buyers are looking for good deals and discounts.
A lot of publicly traded second-hand car dealers like AutoNation, Group 1 Automotive, CarMax, Asbury Automotive Group, or Sonic Automotive watched car sales rise by a double-digit percentage in the past two or three quarters alone. Based on the data from Manheim Consulting, car repossessions go down as the country’s economy improves.
At least 8% of people sells their second-hand cars. Meanwhile, rents are back, and dealers are unloading at least 2% used cars compared to previous years. Prices and discounts for used cars are up all over the country, with vehicles selling for at least $7,000 to $11,000 for less popular models and $12,000 to $15,000 for popular or known models.
(To know more about car repossession, click here.)
The major problem with the sales in the car industry is that a lot of thrifty United States drivers are still affected by the latest recession, and they are not as willing to trade their second-hand cars as they once were. Auto data services’ studies showed that the average age of light cars and small trucks on United States roads is around 11 years old.
That’s 3 points up from two decades ago and 2 points up ten years ago. Where you buy your used car can have a huge difference in the price tag of the vehicles you find, and it is worth looking at other places aside from your local dealership. For example, cars for sale in Fresno can be more affordable compared to vehicles you can buy in places like Reno or Albuquerque since Fresno is in California which is a massively dense state regarding population. People can find more car choices in Fresno compared to Reno or Albuquerque.
But even for people who want to buy used cars and are living in a more affordable used car places like Fresno, understanding your local market value is very important in assessing whether the listing you found is a good deal or not.
There is a lot more than the geography where used cars have a good deal from places where they are much pricier. A lot of dealerships use its market value algorithms to know the value of used cars in different urban and rural areas all over the country.
The algorithm will then rank the largest urban and rural areas in the United States, according to how are the car prices in that market compared to the average costs of cars nationwide. According to studies, a lot of car buyers are paying at least 1.4% more than the average price nationally for a vehicle that is solely in Harrisburg, Pa., compared to cars sold in Allentown, which is at least 2.8% less than the average market price nationally.
Used cars in Scranton are also cheaper by 2.5% compared to the rest of the country. According to CarGurus’ data, the three places mentioned above are some of the best places in the country, to buy used cars. You can also search the internet to see where you can buy the cheapest used cars near your area.