Pre-owned car sales are increasing in the auto industry, with more people searching for a deal compared to a new vehicle. Buyers want reliable transportation at affordable costs. Many experts are pointing to digital lending opportunities and artificial intelligence as industries that will expand to impact the automotive industry. Digital lending platforms alone are projected to double in size and reach $12.1 billion by 2023, according to a recent Research and Markets study. In addition, many dealerships are moving towards subscriptions and shared ownership models. However, this in turn is causing many who prefer owning their vehicles to turn to used cars. Here, find out why the car market is moving away from new cars and how you can benefit from this trend.
Vehicle Pricing
Affordability is the top factor of this used market trend. People would rather purchase a high volume, late-model vehicle, compared to a newer version. They think about financing, market price, and expenses like maintenance fees when it comes to making a purchase, and in most situations, the pre-owned vehicle is less money. As a result, dealers are placing more used inventory on their lots and online, to keep up with the demand.
Financing Options
Since buyers are not losing money on depreciation, it might be easier to find good financing options. The interests on used loans could also be lower, giving used cars an advantage over newer automobiles. Saving up money to purchase a used car in full is often easier, compared to buying a new vehicle. With financing as a top factor, the car market could continue to move towards pre-owned cars.
Sell Your Used Vehicles
If you have a car, truck, or SUV sitting in the driveway or on the curb outside your home, you should look into putting the vehicle on the market. Your older car could be just what someone is looking for to get from point A to point B. There are a variety of dealers that offer money for your junk car, so test these buyers out now. The money earned from the sale could come in handy for household expenses, medical costs, family vacations, tuition, and more. Before you enter an agreement, it would help if you did a little research to find out how much your car could sell for, based on its condition, make, model, location, and other car market trends.
Lower Insurance Rates
During the car-buying process, buyers think about other costs, including car insurance. Some consumers pass on their dream car for fear of high insurance premiums. The used car is easier to insure because it has already depreciated and is generally less expensive to replace. Younger buyers usually have higher insurance rates, which is why many are choosing pre-owned vehicles to cut costs.
Many consumers are turning toward pre-owned vehicles, and the car market is following suit. As long as buyers continue to see used cars as cost-saving and quality investments, the trend could continue!