Used cars are poised to sell better than ever in 2016, largely because consumers are realizing just how affordable a used car can be. The popularity of used cars is likely on the rise due to multiple factors, from less spending money to brand exclusivity among other things.
According to Edmunds, one major factor is that since 2015, brands have been significantly increasing the cost of their new cars. Buying a used car lets you save up to 30% of the initial cost, even if a model is only a year or two old. Demand drives cost up—waiting a little while means less demand and less overall cost.
“The market is flush with off-lease vehicles that are coming back to dealerships,” reads the Used Vehicle Market Report. “Most former rentals are concentrated within the segments of midsize car, compact car, subcompact car and larger car and are often distinctly different in terms of content and mileage from off-lease or consumer trade-ins,” the report said. “Based on the influx of this inventory and the expectation of low gas prices, Edmunds predicts that average prices will continue to fall for these segments.”
The growth of car-rental agencies and leasing is also making used cars more available. Such agencies get rid of cars after a few years, flooding the market with affordable used cars. Plus, most people have less cash than normal due to hard economic times, making financing easier for used vehicle buyers. These are just some of the reasons you might also consider buying a used car today.