Have you checked used prices recently?
Well! you're not the only one. Millions of Americans are wondering why used car prices have gone up so much lately.
The answer is simple. People are buying used cars like never before. Investors are not only looking for the best deals on used cars, but they're also looking for specific features and brands. Let's take a look at where we have come from, which will help us understand why this trend is occurring now in history.
Older used cars didn't increase in value
Back in the day, there was a stigma attached to buying used cars. Often times people would buy old clunkers and drive them until they were completely unfixable. There's nothing wrong with that of course, but those old beaters didn't fetch much more than 100 dollars when it came time to replace them. That's because people weren't paying attention to the brand or how well maintained that car was. They just needed something to get from point A to point B without breaking down!
Let's look at a few examples: In 1999 you had two choices for transportation. You could buy a brand new Honda Civic for about $12,000. With your other hand you could have bought a used Toyota Camry for about $3,000. If you were willing to go a bit older in model years, the price would have dropped to about $1,500.
Now Scotty Kilmer thinks used cars are going to plummet? but let me show you why this might not be the case
Now keep in mind that the condition of this car wasn't necessarily an important factor when purchasing these cars. The market was flooded with older used cars because hardly anyone was looking at them as an investment opportunity before 1999 or so. However after 1999 the market caught on and started paying attention to certain brands and models that were known for their resale value and reliability. Also people started inspecting body frame damage much more carefully during the purchase process than they had before 1999 . This is why prices sky rocketed so fast right after 2000 . Those oldaters started getting bought up quick!
It only makes sense that the same things happening during the 90's are affecting prices right now. People are paying much more attention to resale values and they're not settling for just any old clunker . They want something that will hold its value while they drive it off their driveway, into their garage, or onto a used car lot. This is why prices have increased so drastically in recent years.
This means you could make money off of your used car!
Another reason why used car prices have gone up is you knew it inflation!
Well yes, but that's not the whole story. Average inflation rates are based on a basket of goods which includes all consumer and industrial products in the USA. Yes these cars are new items that have been produced within the last 3 months , however they're also used items as well . People use them for transportation or leisure every single day!
If you have been looking for prices lately you probably made a “whaaat?” face, which looks something like this
Now don't get me wrong, inflation in automotive industries is inevitable due to technology, production expenses, and many other reasons such as supply and demand factors. However most people tend to ignore increasing prices when it comes to their own vehicles. Take this chart from Edmunds for example:
| Vehicle Category | July 2020 Average List Price | Change Since June |
|---|---|---|
| Large Truck | $33,264 | $2,301 |
| Midsize Truck | $29,457 | $1,812 |
| Sports Car | $24,867 | $1,369 |
| Large SUV | $37,942 | $1,094 |
| Large Car | $22,446 | $1,060 |
| Subcompact Car | $13,214 | $841 |
| Midsize SUV | $24,766 | $803 |
| Midsize Car | $16,709 | $520 |
| Subcompact SUV | $17,169 | $516 |
| Compact SUV | $18,949 | $512 |
| HD Truck | $43,044 | $491 |
| Compact Car | $14,859 | $427 |
| Minivan | $21,727 | $415 |
Did used large trucks just go up by $2,301 in one month? You read that right….did anything like this happen before…not quite… this is pretty aggressive for one month, however consider the following: The Honda Accord hit its peak values in 2007 at about $16,000 if you bought new! But what happened right after that? The financial crisis was triggered by subprime mortgages in the USA, and car prices went with it! They plummeted to less than $9000 for a new Accord.
If you were smart enough to have bought that car when it was valued at around $11,000 or so -which is smack dab on its second spike of value- then congrats! You made about 35% profit just by sitting on your used car investment for 8 years and flipping it right back into the market. That's not bad huh?
The future looks bright for used car investors
I won't talk about forecasting here but I will say this; cars are built to last longer than ever before because of higher quality materials and processes going into their production. This means that there will be plenty of good quality cars to choose from in the near future.
A few predictions from experts: Used car prices will continue to increase by about 5% a year for the next 10 years because of market demand factors such as increasing population, number of new drivers, and consumers looking for cheaper transportation. Luxury models such as BMWs , Mercedes , Lexus, etc are expected to have higher than average price increases due to consumer demand, technology advancements, and their resale value reputation. The US dollar is expected to weaken against other currencies which will make our domestic goods more expensive but also increase purchasing power in foreign countries where these cars are produced or bought/sold. There are many reasons why predicting the future is difficult; this just shows a few of them. So what should you do? Take advantage of the used car buying trend and sit on your used cars for 5-10 years minimum. Trust me, you'll thank yourself in later years when you get to sell all that hard work over time 🙂
Spoiler alert: Rising Used Car Prices are here to stay!
They've been going up for 16 years now, but it's not going to stop anytime soon due to market demand factors such as population growth and inflationary valuation trends. The good news is that if you take proper care of your vehicle and use it responsibly -not like an 18 year old would- then your investments will last much longer than they would have in the past. So how do you that?
So how do you do that? Simple
Drive less than 15,000 miles a year and take good care of it.
Wash it every week to prevent rusting;
make sure you change the oil on time with high quality synthetic oils and filters;
check the tires for wear and replace them if they have too much wear.
If these three things are done properly then your vehicle should last hundred of thousands of miles before you need to get a new one!
Also you don't want to throw away your car as soon as it breaks down, look for car parts and get a repair done professionally by a qualified mechanic so that you don't have any problems later on.
So check your car now…has it risen in value yet? You might just be surprised, but also don't forget the one important thing that we humans tend to forget:
“It's not making money; it's saving money.”
Everything you do to take care of your car is saving you from buying another one and losing more money. That's why we want to help you save money by giving you a 10% discount for auto car parts here or the coupon below
Do not underestimate the role of tires in your used car value and its preservation. They affect nearly every aspect of your vehicle, and they directly influence its overall performance.
Recommended ways to increase the the longevity of your automotive
Take care of your wheels and tires
They are heavily exposed to the elements, so if you want your tires to look good and operate at their best for as long as possible, use these tire tips:
* Check tire pressures regularly – Make sure that tires on all four corners of your car are inflated to the indicated pressure levels in the owner's manual or on a sticker placed inside the driver's door edge. Air pressure has a significant impact on fuel efficiency and braking distance – it is estimated that each one psi drop reduces gas mileage by up to 2% . So, check tire inflation regularly! It will not only improve efficiency but also prolong tire life. By doing this, you will not only save money but also prolong your car's lifespan.
* Inspect wheels for cracks and defects – Check the entire wheel surface, including the tires' sidewalls and treads. Tires may be defective from the production stage. For example, they can have wrong air pressure or imbalance for a particular vehicle model . This is another good reason to check them regularly in order to avoid further problems down the road. You should also inspect tires for signs of damage after every accident so that any developing problems are addressed before they turn into something more serious (such as a blowout). In addition, look out for corrosion on steel rims . Rusted-through rims must be replaced; otherwise, it can compromise structural integrity and lead to a blowout. You might find the following link useful if you're looking for new wheels.
* Rotate the tires – Tires wear out unevenly. The first section of the tread that gets used most often wears fastest – this creates a flat spot on the tire (the area where three tyre tread patterns meet). To preserve your car's handling, shift torque between front and rear tyres . This will help even out their overall wear and keep your vehicle stable and safe at all time. What is more, if you are planning to sell it soon, rotating your tires regularly prolongs its lifespan by saving some money spent on replacing worn-out tires sooner than expected.
* Replace worn-out tires with new ones – When replacing sold car parts, you should always replace them with new ones. It is not worth spending money on cheap used parts – it's better to spend some extra cash and save your car from possible hidden troubles in the future. If you want to sell your car, replace worn-out tires with new ones before selling because they significantly affect your car's used value . Used cars that come with worn-out tires get lower prices than those equipped with newer, better-looking tires. We recommend Priority Tire because they can have some pretty good prices and 90-day window for returns.
At PriorityTire.com, you will find the Large Selection, Lowest Prices, Fast Delivery and FREE Shipping on new tires for your vehicle and much more!Lease a car instead of buying one
Some consumers might wonder why they should go to great lengths just to get the best car price. Can't you just buy a car and drive it around without worrying about prices? After all, if you want to save money on something that you will use every day, like your car, then it only makes sense to be proactive in trying to find the best deal.
However, many people assume that cars are a necessity in their lives. They might even feel trapped into really expensive financing options because of that assumption. The truth is that cars are not one size fits all kinds of transportation. There are plenty of affordable ways for everyone to have roadside assistance when they need it most. It may actually be less expensive than owning a car outright!
It may shock some readers to hear this, but in most areas of the country, it is actually cheaper to lease a car than it is for consumers to buy them. People who assume that they need to pay tens of thousands of dollars upfront on a new or used vehicle are probably coming from the perspective that these cars will last forever. The truth is that cars are designed with a lifespan in mind. They aren't going to last forever and if car owners want their vehicles to last more than 50% before repairs become necessary, then they should plan ahead by thinking about what their next option might be.
People who drive with regularity do not always make great drivers because they have been behind the wheel so much. Some people end up getting into bad accidents because they developed a sense of over-confidence in their driving skills. In fact, people who lease cars are often some of the best drivers on the road because they have more stringent requirements for keeping their vehicles in good condition. They know that there is no way to get another vehicle if something happens to theirs during the term of their lease!
Anyone who leases a vehicle has access to roadside assistance from any number of outside vendors. It might be available at an additional cost, but it is well worth having around just in case something does happen with a car on the road. Drivers can call up these services and have someone come out and fix whatever issue they might have with ease! This keeps them safe when driving and can save them a lot of trouble in their day-to-day lives.
Consumers might think that they understand the benefits of leasing, but it is possible that there are even more reasons to have this type of transportation than they previously realized. With access to roadside assistance and other perks, leasing a car could be the best decision consumers will ever make for themselves!
Buy your car from an established trustworthy dealership
When buying an automobile, many people will visit a dealer to purchase it. A dealer has trained personnel who can help purchasers select a good car based on their needs and preferences as regards comfort, performance and so forth from among the available models offered by that dealership's manufacturers.
The dealerships also have departments that can help the buyer fix mechanical problems with their new car. In addition, a dealer is familiar with the manufacturer's warranty and will be able to provide any necessary repairs if they are covered by this guarantee. A trustworthy dealership will stand behind its products and offer competitive prices for buying cars in general; many collectors' items are sold by dealers everywhere, but buyers should still take care to make sure they are getting a good deal on such items as well.
While it is always possible to buy an automobile from a private seller, it can be difficult for someone who does not know much about cars to tell whether or not she is being presented with a fair price or even if the vehicle being offered is in good condition. The suitability of the car for the buyer's particular needs and preferences is also harder to determine when purchasing from a private party.
Buying cars at an established dealership allows buyers to feel confident that they are making a good investment in their new vehicle, as well as offering them the expertise of experienced personnel who can help both with their initial purchase and any repairs or maintenance needed later on.
Rent a car throught Uber!
Do you need a car, but only occasionally? Is it cheaper to rent a car on demand from Uber rather than signing up for traditional car rental services? Most importantly, how do you avoid paying exorbitant “surge pricing”? If you're thinking about renting a car through Uber, here's what you need to know.
The price for the vehicle is calculated at approximately 0.55 cents per mile (about $30 per hour) plus an additional fee of around $3.00-15 depending on whether or not there are surcharges in your area. There will be surcharges during high demand times like Friday nights and holidays but these can often be avoided by simply booking your rental early enough or late enough in the day.
The price of the rental is determined by a combination of these factors:
* The size, make and model of the car.
* Your location at pickup and drop off. The greater the distance between your pickup point and your drop-off point, the higher Uber will charge you for your trip. This is due to an increase in wear-and-tear on cars that incur additional driving per mile costs. These extra miles are called “excess mileage” by Uber. For example, if you live one block from an airport or downtown area, it may be cheaper for you to rent a vehicle closer to your home than to travel further away to find a lower rate. In most cases though, taking a taxi would be the cheaper option.
* The time of day and night you are renting the vehicle. Uber charges more for rentals during peak hours, such as Friday nights after 10 p.m. or anytime on a holiday weekend, in an attempt to encourage drivers to get on the road when they otherwise wouldn't be motivated enough to do so (and create competition for you). If you're flexible with your pickup and drop-off times then it can save you some cash, but if not then avoiding high-demand surge pricing is paramount. To determine which days will have surges you can visit uberdata.com/surge-calendar/. It's also worth noting that surge prices go down over time based on demand, so if you jump into an Uber when one has just gone up you may find that it's cheaper a little later.
* Your rating as a driver or rider. If your rating is low, Uber will charge you more for the rental since they are assuming that this means you are more likely to abuse the vehicle than someone with a high score. In other words, if you're an excellent driver then this could save you money on your trip (especially if the surcharges are in effect). This has only been implemented recently and we'll have to wait and see how much of an effect it has. You can check your own ratings by going to uber.com/ratings; likewise drivers can check passenger scores at uberdata.com/. To get a high rating, you or the driver must be courteous and take care of damages after the trip.
* The insurance coverage offered by Uber. If you have a drivers license then you're likely to have basic liability insurance already and this will cover damage incurred to the car in most cases (but there are stipulations on this). Most standard car rental agreements offer basic protection from scratches and dents but it doesn't cover any accidents that occur while driving. Even though standard insurance may not cover your vehicle it's still a good idea to file an accident report so that you'll be covered if something happens on your trip with Uber. To avoid paying for additional excess mileage charges it's best to return the vehicle when the tank is half- at least half- full.
Use public transportation!
Public transportation can be the best way to get around. It's convenient and it can save you money.
Public transportation is an efficient form of travel. It gets you where you need to go quickly and comfortably without all the hassles of driving. You don't have to leave your car at home, paying parking fees or finding a parking space. If there are no cars available then public transportation is often your only option for getting somewhere on time.
Public tranportation saves you money because using one form of transporation won't waste gasoline like other forms do (parking fees, gas when searching for a car park). Public transportations also make fare price competitive with driving costs; meaning that people who use public transportation will spend less on gas, parking fees and other related costs of using a vehicle.
Most public transporation systems are safe and efficient; where no matter the time of day, you can reach your destination in just minutes rather than hours. Public transportation is also environmentally friendly because it eliminates traffic congestion and pollution. The savings that people can save by using public transportations come from money not spent on gasoline or car repairs due to more frequent wear-and-tear caused by driving for long distances every day; saving users money because they won't have to buy new cars as often nor do costly car repairs. The elimination of waste products polluting the air and land also creates a cleaner, safer environment for everyone to live; saving us money because we won't have to spend it on medical bills or equipment. Cleaner air lessens the risk of respiratory diseases, while a safer environment means fewer deaths and injuries which in turn means lower health care costs.
Public transportation is readily available; yet, some people still rely on their own vehicles to get from point A to point B. If you use public transportation instead of driving everyday you could save hundreds of dollars every year! Public transportation saves time and money: what are you waiting for? Go out there and try using public transportations today!
Carpool with co-workers, friends or family!
Car pooling is a great way to save money on gas and reduce traffic on the roads. It also helps reduce pollution because of fewer vehicles on the road.
When I was in college, I used to carpool with my friend every week. We would leave our dorms at 8:00 am on Tuesday and Thursday mornings, he would drop me off at work by 10:00 am, then he'd go to class. Then we'd reverse it when school let out for us. We lived about 15 miles apart from each other and between classes or after class sometimes we would grab food together if neither of us had much to do that night. If one of us had a meeting with professor but wasn't going straight home, we'd drop the other person off at home before driving to that meeting. If one of us had to work until eight or nine pm, we would take turns driving the other person home and then go back to our respective jobs.
Car pooling is fun and convenient, but it's much more enjoyable when you enjoy the company of those with whom you're sharing a ride. I always enjoyed my rides with my friend because he was funny and knew how to have fun on a boring drive (singing songs, making up games, etc.), which made the time pass by quickly so we could spend more time together after work or class. People who share a ride will frequently talk about their day because they know that each other has been in the same situation and might have knowledge or experience that could help.
There are many benefits to car pooling, but one of the most important is financial savings in terms of gas, parking fees, and repairs because there's less wear-and-tear on a vehicle when you share it with four people instead of just yourself. Not only does it save money, but carpooling saves on energy consumption by reducing the number of cars on the road. And as mentioned before, fewer cars means less pollution in our environment. Car pooling is also great for exercise because all four people will be active in some way while they're sharing a ride together; that way not everyone sits on their bums all day long (although I can't speak for everyone).
Some people think that car pooling is inconvenient, however, when we experience it with four people instead of just one. Car pooling can be a hassle if there isn't a good fit in personalities or someone is constantly late because they can't get ready on time; it's not much fun to drive around waiting for other people who are running behind schedule. Also, sometimes the trip might take twice as long when you're sharing a ride with others – I've had some classes where my professor is 20 minutes away from campus and my carpool took more than an hour to get there each day because of traffic lights. Another thing about car pooling that most people don't realize is that your friends may tend to monopolize the radio, choosing songs they like and ignoring your requests.
We all have to get around somehow, so why not share a ride? It's fun, saves money in the long run, and helps our environment! I always enjoyed car pooling because my friend was a lot of fun and shared some good times with me. If you're looking for companionship on your daily commute or simply want to save money on gas or parking fees (or both!), consider car pooling today!
