With the economy still not back to where it was some years ago, getting used cars for sale instead of a new one is a better alternative. Or not.
An economist, Paul Ballew said that over half a million people who bought new cars were actually thinking of buying used ones. “There’s a substitution effect going on between new and used. When you get those price gaps closing, you get people that are willing to shop new that wouldn’t have before,” he shared.
This means that when a prospective buyer learned about the smaller price difference, plus the lesser amount of money you will spend on repair and maintenance, they tend to consider getting new cars. If you take a closer look at Edmunds.com, buying a Chevrolette Corvet is actually $12/month cheaper than buying a used one. We don’t know how that happened but it is a given fact. For sure, if you factor in the fact that you don’t have to take your car to the dealership regularly because something broke, you’ll get the new ones right?
This is good news, it seems, especially for the auto industry still rising up from the post-recession era. Even if some brands are trying to get back up, Mercedes-Benz has sold 7.3% more cars in 2011, together with other sportscar manufacturers posting an increase of sales of 2.9%.
You may save a bit when you bite a “used car for sale” ad, but with these facts right now, you may reconsider as you might get a better deal getting a new one.