Small used cars are hot

The demand for small used cars is very high and this is not standard. Most people opt for larger used cars that tend to be considered safer with lower car insurance premiums. However, this is not the case in the current market.

However, it’s not too surprising for professionals. They compare this increase in small used car sales with the summer of 2008, when gasoline prices soared. It seems familiar in the summer of 2018.

As a result of this market change, auto companies are reducing production of new compact cars. With low supply, there is less demand for new compact cars available. This means that customers need to bid higher to get a car.

This is the movement of the market, as used car sales increased by 2.2% for the first time in 13 years. It also means that the price of small cars should actually rise by 3.9 percent. It’s just a way to play the market.

Off-leasing cars can also be flooding the market, as other numbers prove, showing that off-leasing cars are being absorbed very easily. People seem to be looking for a used car for basic transportation. Another reason is that hurricanes and flood victims from previous storms are spending their insurance money and that’s all they can afford.

There are also some other money-saving benefits of buying a used car, here are some.

Depreciation

When you buy a new car, the car can be depreciated up to 50% within 3 years, which means you lose a lot of value. When buying second-hand goods, you don’t have to worry about depreciation.

More value of your money

You don’t have to worry about depreciation, so you have more budget for better equipment and better models than if you were buying a new one.

variety

While the new car market offers only 350 models a year, the used market has more options and good news if you can’t find your dream car in the new market. This means you don’t have to settle or pay any more just to settle for a car that isn’t completely satisfied.

Low insurance

Your car insurance is based on the value of your car, which is why it is cheaper with cheaper cars. For new cars, they are more expensive and therefore insurance is more expensive. However, apart from that, no matter how well you keep your car, you have to deal with depreciation over the next three years.

Cheaper registration fee

Older cars usually cost less to register, depending on where you live. This is definitely a bonus.

If you’re considering buying a used car, especially a small car, now is the time!