Used Car Prices Expected to Drop in 2010
The best way to maximize savings when buying a car is to purchase one that is 3 to 4 years old. This way, you'll avoid incurring the largest cost of a new vehicle - depreciation cost.
This past year however, used car prices steadily increased due to unusually low supply. With new car sales near 30-year lows, people were trading-in fewer cars for new ones. In addition, rental car companies were keeping their vehicles for a longer duration rather than upgrading to newer models.
According to USA Today, there were 8 million fewer used cars and trucks over the past two years.
If economists are correct, that's about to change in 2010. Car sales have recently improved and economists are expecting a 15% increase in new car sales this year. This means more people will be trading-in their used cars, thus increasing the supply.
This is good news if you intend to buy a used car this year. But keep in mind that new car sales are still way below average and used car prices will still be higher than usual. If you're buying used, our advice is to buy a car that is at least 3 years old. If you're looking for anything newer than that, your savings won't be as large.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
New York Tri-State Residents - Important:There is a new car leasing service called Carvoy, available to NY tri-state area residents, which I recommend you try - especially if you hate the stress of haggling with car dealerships. Carvoy provides pre-negotiated lease deals, calculated with taxes and all fees incuded so you know exactly what it will cost. Here is my list of Best Carvoy deals, updated each month.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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