Getting a car is a very cumbersome process as there are many factors that you have to keep in mind while buying a new car. However, recently it has been observed that people are giving more preference to the used car over the new car. However, one of the major factors that influence this is the price.
For both buyers and sellers who are looking for a fair used car deal, let us introduce MotorCloud, the largest search engine where buyers and sellers can search and compare and get the best results and most feasible results. Also, recently it has reported a 1.2% average decline in used cars and 3.2% for vehicles over 50,000 miles. With this, you can consider it the friendliest platform for both buyers and sellers.
Used car prices in recent years
In recent years it has been observed that the price of the used car in the market has skyrocketed. Also, The US Bureau of Labor Statistics has stated that from December 2019 to October 2022, the used car index has risen by 42% which indicates the price rise. Two major factors are responsible for this scenario and they are:
- High demand: the recent COVID Pandemic can consider one of the major contributors to this factor. Also, most of the people kept their purchases in wait due to the pandemic and now they’re back for the used car purchase.
Also, another contributor to the factor is the low interest on the loan. That reduces the payment burden on the buyers.
- Reduced supply: due to the temporary shutdown of the car industries, the production of car parts and new cars stopped. And the industry couldn’t fulfill the demand of the buyers.
Drop in the car price
if we compare the accelerating rate and decelerating rate of the price of used cars then the accelerating rate is quite high. Hence, the drop will be very slow as compared to the rise. With the normalization of the industry, the price would eventually drop. However, according to recent reports of retail inventory, the price will stay high throw-out 2022.
Even though the price will drop, we can’t say to how much extent it will drop as it depends upon the personal factors of the car.
Comparison and contrast between the pros and cons
There are various advantages of buying a used car. The major advantage is that the price for the used car is quite less as compared to 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 warranty.
Even though there are pros but also cons, in case of used cars you may not get enough choices and the interest is also high. Also, most of the time the car looks fine from the outside, but carries lots of damage.
Conclusion
It is wholly your choice whether you want to wait till the price drops or buy a new one. Hence, make the decision carefully.