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Will Used Car Prices Fall in 2017?

Will Used Car Prices Fall in 2017 - Get My Auto

It’s shaping up to be a great year for U.S. car shoppers. New car lots will feature some of the most technologically sophisticated vehicles ever engineered. Financing will be incredibly advantageous, offering low interest rates to the consumer. And arguably best of all, used cars will continue to offer an amazing value—in fact, used car prices may drop even further than they are now, a true boon to anyone who wants to get a reliable vehicle for an affordable price.

What About New Car Prices?

Before we get to used car prices, though, let’s take a moment to compare new car prices. Here, frankly, the news isn’t quite as positive. While new car sales hit an all-time high in 2016, prices have also skyrocketed. Right now, the average cost of a new vehicle is $32,000—the highest it’s ever been.

Many experts say that this figure will rise even further in the coming months. There are a couple of reasons for this. One is that consumers are gravitating toward SUVs and large trucks, both of which are fairly pricey as a rule. Two, consumers are loading their cars up with all the bells and whistles, which allows them to take advantage of the latest technologies but also drives up the price point significantly.

Used Cars Provide a Better Value

There are a couple of ways in which buyers are coping with these escalating prices. One is to lease, though that’s generally not something we recommend: You pay a lot of money every month but when your lease is up you’re right back where you started, with nothing to show for it.

The better option, and the one more and more consumers are choosing, is to buy used. In fact, some states have already seen used car sales eclipse new car sales. California, where Get My Auto is located, is one of them.

And in 2017, used car sales will likely rise, largely because prices are sure to drop. A Reading Eagle article explains why: “A big supply of vehicles leased two or three years ago is returning to the market. Prices for used SUVs and trucks, which are in high demand, likely will stay stable this year, but used car prices will fall,” the article states.

While used vehicles may not be quite as technologically advanced as the brand new models, most of them remain incredibly reliable and safe—and even a car that’s just two or three years old can be significantly less expensive than its brand new showroom counterpart.

A Good Year to Buy a Car

Whether you are looking to spend top dollar on a brand new car or score an amazing deal on a used one, 2017 is shaping up to be your year. Start the process of looking today. If you need to be connected to a reputable used car dealership in the Orange County area, don’t hesitate to give the Get My Auto team a call.