The used car market was supposed to be falling apart this year. According to many analysts, 2017 was going to see a free fall in used car prices, all because leases are returning to dealerships en masse and saturating the marketplace with previously driven vehicles.
But here’s the thing: It’s just not happening, at least not yet.
Instead, buyers across the country are seeing used car prices holding firm, especially with regard to trucks. This is, of course, happy news for dealerships, but that’s not to say it’s bad news for consumers. After all, dealership lots have wide inventories made up of all kinds of vehicles, and if prices aren’t falling, they do remain pretty reasonable.
“The Wrong Idea” for Buyers
A recent article from The Toledo Blade puts things into perspective. “Morgan Stanley, in a recent research report, said it expects used car prices to drop by 20 percent in the coming five years, but its analyst warned prices could tumble as much as 50 percent,” says the article. “Others have offered similar, albeit less drastic, projections. But some experts say those projections may be giving prospective buyers the wrong idea.”
It’s the wrong idea because used car prices are probably going to fall very gradually, for one. Also, if they do decline, they’ll still be within historic norms. Prices right now may be just a touch inflated; consumers can expect prices to fall just to the point where they meet the historic trend line.
Continues the article from The Toledo Blade: “In the short term, used-car prices might actually go up, bumping up squarely against the collective wisdom of the industry, which saw a flood of cars re-entering the marketplace in the coming months and years as consumers turn in cars they leased after the Great Recession.”
Is Now the Time to Buy a Used Car in Orange County?
All of this begs the question: Should consumers buy used cars now, or would it be prudent to wait?
That’s dependent on a number of factors. Some consumers simply can’t wait two to five years to see if prices drop—and if not, that’s perfectly fine. You can get a really good deal on a used car right now, one that may be less than 50 percent of the initial sticker price of the vehicle in question. In other words: Even if prices aren’t currently at their low point, they are still more agreeable than the price of a brand new vehicle.
That’s especially true if you buy from a reputable Orange County used car dealership, which is what we recommend. In fact, we’d love to connect you to one. Find a great value on a used vehicle today, from an Orange County dealership that will deliver friendly and professional service. Reach out to Get My Auto to begin the process.