Why this year is a good time to buy a used car
Starting with the time when recession hit the markets globally, people started leasing more cars than ever. This new thing with auto leasing, offers some unexpected good news to consumers who are looking for used car bargains. With the end in lease contracts, the end of lease cars will arrive in millions as used cars in the market within the next few years, almost certainly resulting to reduction of prices on comparatively low mileage, late model cars with most modern amenities.
Two and three year leases signed then will start to come in the car market this year, adding an expected 800,000 used cars into the auto market. Experts say that 2nd hand car prices are likely to actually fall an average of 2.5% each year for the next three years. Instigated mostly by the influx of millions of end of lease vehicles, the car dealers have expanded their certified pre-owned sales efforts, which are highly popular with consumers who are drawn to CPO sales programs. The prominent factor shaping the trends in sales of used cars today is the popularity of leasing, which is in turn bringing in fresher and higher quality used models back to the car market.
For consumers who are looking for the best possible deal in the pre owned car market, it may be better to wait for some time since values continue to drop. It is expected that used car prices will continue to fall this year, so it is wise to wait and watch then buy. A similar trend of dropping prices of used car had occurred in the late 1990s and early 2000s. However, with the recent introductions of Certified Pre Owned programs, which increase the expected value of a pre owned vehicle by extending warranty programs similar to the ones available for new cars, have been put in effect to minimise the risk of a free fall in the used car market. The reduction in price of used car is more indicative of a market returning to healthy levels. Rather than a sign of instability, the market is relatively stable right now and therefore favourable for purchasing used cars.
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A leading survey brand has published its reports, which says that after observing millions of price drops on pre owned cars, it was established that months with a larger count of price drops are the best months to buy a 2 since the car dealers are generally more willing to negotiate on the price then. These months also reflect minimum customer activity, which naturally instigates the car dealers to drop prices on cars
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