Used Vehicle Sales Set to Hit a Record High During 2019
As the average price for a new vehicle continues to increase, many drivers are turning to the used vehicle market instead
It’s certainly no secret that the price of a new vehicle is perpetually growing more expensive. As prices continue to rise, many consumers turn to purchasing a used vehicle instead.
That purchasing decision appears to be a popular one, as analysts expect used vehicle sales will likely reach a new record in 2019.
Reasons for a Used Car Purchase: Why buy used?
Last year, a total of 40.2 million used vehicle were purchased in the U.S. By the end of this year, that number could grow to 41 million.
Back in 2013, the price gap between a new vehicle and a used model that was three years old was right around 56 percent, accounting for roughly $11,000 in savings. Last year, that gap grew to 62 percent, with customers saving an average of nearly $14,000 by purchasing a three-year-old vehicle.
Photo: Mitsubishi
Interest rates for a new car have also increased alongside asking prices. New car interest rates increased 17 percent in 2018. During that same time, interest rates for used vehicles only grew by 9 percent.
The increasing price for a new car isn’t the only reason why used vehicle sales might hit a new record high in 2019. A record number of lease returns are set to happen this year, greatly increasing the pool of used cars to choose from.
First-Time Financing: Financing your first car
This sales environment also creates opportunities for automakers who wish to promote their Certified Pre-Owned programs.
“Many shoppers are unaware of the benefits of CPO vehicle programs, but given the tough financial conditions in the new market, it’s never been a better time to look into them,” explained Ivan Drury, the senior manager of industry analysis for Edmunds. “Between more affordable prices, the assurance of an automaker warranty, and lower interest rates, CPO vehicles give car shoppers a way to enjoy many of the benefits of a new car and minimize many of the risks of buying a used car.”
New vehicles aren’t going to go down in price anytime soon. Therefore, drivers who are looking to save some money will likely help used car sales reach record heights by the time 2019 draws to a close.
News Source: Edmunds
Zachary Berry currently resides in the Dayton, Ohio area. However, he enjoys traveling from place to place, as he was born in Oklahoma City and has also lived in Albuquerque and Orlando (such is the life of a military brat). Zachary graduated from Ohio University with a major in Strategic Communication, which is fancy talk for advertising and public relations. Beginning his career at The News Wheel as a lowly intern, he was able to climb his way to the top, eventually claiming his place within the last cubicle on the left. Other jobs that Zachary has held include driving around a safari truck at Disney’s Animal Kingdom. When he’s not putting his nose to the grindstone, Zachary enjoys watching and critiquing movies and television. See more articles by Zachary.