A guide to learn more about falling used car prices and its consequences

Getting a car is a very cumbersome process as there are many factors that you need to keep in mind while buying a new car. However, recently it has been observed that people give more preference to used car than new car. However, one of the main factors influencing this is the price.

For buyers and sellers looking for a fair deal of used cars, let us introduce you to MotorCloud, the largest search engine where buyers and sellers can search and compare and get the best results and the most achievable results. Additionally, it recently reported an average decline of 1.2% for used cars and 3.2% for vehicles over 50,000 miles. With this, you can consider it the most user-friendly platform for buyers and sellers.

Used car prices in recent years

In recent years, it has been observed that the price of used car in the market has skyrocketed. Additionally, the US Bureau of Labor Statistics said that from December 2019 to October 2022, the used car index increased by 42%, indicating the price increase. Two major factors are responsible for this scenario and they are:

  • Strong demand: the recent COVID pandemic can be seen as one of the major contributors to this factor. Also, most people have been waiting for their purchases due to the pandemic and now they are back to buying a used car.

Also, another contributor to the factor is the low interest rate on the loan. This reduces buyers’ payment burden.

  • Reduced supply: due to the temporary shutdown of auto industries, the production of auto parts and new cars has stopped. And the industry couldn’t keep up with buyer demand.

Lower car price

if we compare the acceleration rate and the deceleration rate of used car price, the acceleration rate is quite high. Therefore, the decline will be very slow compared to the rise. With the standardization of the industry, the price would eventually come down. However, according to recent retail inventory reports, the price will remain high through 2022.

Even if the price will drop, we cannot say how much it will drop because it depends on the personal factors of the car.

Comparison and contrast between pros and cons

There are several advantages to buying a used car. The main advantage is that the price of the used car is much lower than the new one and you can get the latest car if you find one. Also, the loan amount is lower in a used car and you are also offered a repair guarantee.

Even though there are advantages but also disadvantages, in the case of used cars, you may not have enough choices and the interest is also high. Also, most of the time the car looks good from the outside, but has a lot of damage.

Conclusion

It’s entirely your choice if you want to wait for the price to drop or buy a new one. Therefore, make the decision carefully.

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