Consider these three statistics about used car sales in the U.S. auto market right now:
40.5 million: The number of used cars that American consumers purchased in 2012
25%: The percentage of new car sales in 2013, according to Time Magazine, that were leases.
$31,000: The average cost of a new car in the U.S., as of 2013.
So why do these numbers matter at all? Quite simply, they all add up to one trend: If you’re considering a buying a used car, millions of Americans are making the same decision, and right now is one of the best times to buy a used car. Not only has the U.S. auto industry really stabilized since 2013, with record-breaking sales numbers for new and used car dealers across the country, but the market has been flooded with used cars within the past couple of years, meaning that consumers are getting better deals on these cars than ever before.
Here’s what happened: About two to three years ago, there was a huge increase in the number of consumers who chose to lease new cars, rather than buy a new car, and the average lease lasts about two to three years. Right now, all of those leases are starting to end, meaning that millions of used cars are being returned to local car dealers — and these dealers need to sell these cars as “used.”
These cars aren’t just significantly cheaper than the average $31,000 new car, but they’re also in fairly good shape. Considering that the average car lasts about 11 years with proper maintenance, two to three years of moderate use is just a small fraction of the car’s life.
So now we’re asking you for your opinions — are used cars a good investment, or do you still think that consumers are better off buying a new car? Check out this site for more.