Conditions Are Perfect For Used Car Buyers in 2016
Unless you’ve been living under some sort of rock for the past decade, you won’t find it at all surprising that the economy hasn’t been in a great place for a while now. Even despite the upturn we’ve seen in the past five years, wages have stayed relatively stagnant while prices have risen all around – and in some markets, like the auto industry, this pinch is felt pretty hard. But while economic issues may play a part in deterring consumers from buying new vehicles at the same rate they would normally, these same factors also play a key role in the evolution of an entirely different market in used cars – and for some buyers, this can be a huge bonus.
That’s because of one interesting trend that’s changed the face of the used car market in America and created the ideal conditions for used car buyers in 2016, and that trend is the rising popularity of leasing. For many drivers, a lease is a great way to get a high-quality, near-new or brand new vehicle for a lower down payment and low monthly payments – like a used Chevy Silverado, which can be quite a deal compared to a new model. Consumers who are used to trading out their old model every few years may actually save money through leasing by avoiding depreciation in favor of the knowledge that the lease will eventually run out – and when it does, it re-enters the lot as a used car, often at a reduced price.
Leasing Is More Popular Than Ever
According to Edmunds.com, more than a quarter of all car consumers have opted to lease their vehicles rather than buy outright in the U.S. since 2014 – a figure reflected fairly evenly across all price ranges and styles, and representing about 4 million vehicles on the road in that year alone. This rate has remained fairly steady since then, meaning there are literally millions of one- and two-year leases about to expire for 2016. Since high supply tends to push prices down to meet demand, this could spell lower price tags on used vehicles throughout the country in the coming months, meaning those young drivers coming off a lease can start to consider buying a used vehicle outright at a more manageable price.
A Wider Variety Of Models
With such a glut in the used car market, buyers can expect to find a wide variety of relatively new, well-outfitted vehicles at great prices in the near future. With higher rates of leasing encouraging more regular turnover of vehicles after only a few years, used car buyers can expect to find a greater number of newer vehicles with better amenities among the older used vehicles. This means that you’re more likely to find that recent model or specific tech feature you could never afford before, nestled under a much more manageable price tag. This kind of upward mobility within the used car market engenders more committed buyers in the long run, and for those looking to get in the car ownership game, there might not be a better time to do so.
If you’ve been considering trading up your old vehicle or simply need to get some wheels but can’t afford something brand new, there’s probably never been a better time to find an affordable used vehicle than the present. With a little luck and a discerning eye, you can get yourself a great used car in 2016 – and when the time comes, there’s no one better than DePaula to guide you in the right direction.