When prices are high for everything from consumer goods to homes, cost-consciousness is more important than ever. If you’ve been car shopping, you’ve seen the inflation firsthand—talk about sticker shock! According to Cars.com, the average price of a new vehicle is just shy of $49,000, while new full-size pickup prices average $59,000! According to CARFAX, average used pickup truck prices have dipped below $34,000 while used car prices have dropped to around $25,000. Do the quick math, and you’ll see how tapping into used car economics can save you thousands of dollars.
How Used Car Economics Deliver So Much Value
We get it. There’s nothing like a brand-new car or truck with that new car smell and the latest bells and whistles. But. That new vehicle excitement can fade pretty fast when monthly payments continue to take a chunk out of your wallet. After all, as soon as you drive off the lot, your new vehicle loses a significant amount of value. Your high car payments won’t go down, but the value of your purchase will month after month.
When you consider the outstanding value you get with a used vehicle,used car economics simply make more sense. There are so many benefits of choosing used over new, from the initial price and lower monthly payments to lower cost of ownership. Here are a few reasons why car economics for used vehicles is a win-win for car buyers.
Depreciation
Did you know that a new vehicle can lose up to 30% of its value in the first year? Depreciation is unavoidable and can even cut the value of a new car in half after only three years. Imagine trying to sell your new vehicle, only to find that it is worth far less while you still owe thousands. When you buy a used vehicle, the bulk of depreciation has already been absorbed by the previous owner. Depreciation may be the most significant reason to buy a pre-owned car or truck, but there are even more savings.
Lower Purchase, Insurance, and Registration Costs
Used vehicles are less expensive than comparable new ones. The lower expense means you can find more attractive finance terms, lower car payments, and significant savings in interest. Buying a used car also impacts how much you’ll pay in registration and insurance costs. The cost to register a used vehicle is based on its depreciated value, leading to lower registration fees. Car insurance will typically cost less because insurers base rates on the reduced value, which is far less than the insurance rates for a new car.
Environmental Benefits
You won’t notice this benefit of buying a used car in your bank account, but that doesn’t mean it doesn’t have value. Buying used instead of new has a significant positive impact on the environment because it lowers your carbon footprint. Consider that about 25% of the carbon dioxide a new vehicle produces occurs during manufacturing and shipping, and it’s easy to see why buying used is so eco-friendly.
Large Selection
Used car buyers will find a broad range of models to find the perfect vehicle that fits their lifestyle and budget. The used car economy means car buyers can better afford high-end models with the most popular features. When you have access to a wide selection of used models, getting the most for your money is easier than buying new model cars.
Trade-Ins Are More Valuable
Recent trends in the used car market have made trade-ins more valuable, further reducing the already lower cost of used vehicles. More car shoppers than ever are choosing to sell their current vehicles instead of trading them in on a used car. The trend means there is a shortage of quality trade-ins at many dealerships. The increased demand for trade-ins makes your used car more valuable and gives you more negotiating room.
Is now the best time to take advantage of a healthy pre-owned vehicle economy? Rising new car prices and higher interest rates make buying new out of reach for most car buyers. New car economics means more and more car buyers are harnessing the power of used car economics to save money today and tomorrow.
Car Economics Are Getting Better
If you’re shopping for a used car, you’re in luck because car economics are getting better and better. According to the latest information from Edmunds.com, average prices of used vehicles in the second quarter of 2024 were nearly 7% lower compared with prices a year ago. According to the U.S. used car price index, the cost of used cars has dropped more than 10% compared to 2023. Plus, industry experts predict that used car prices could be as much as 14% lower by the end of 2024 compared to 2023.
Because the used car economy is so healthy and dealerships are motivated, used car buyers are in the driver’s seat. From the significant savings of lower price tags to the positive environmental impact, buying used checks all the boxes. If you’re in the market for a used hybrid or EV, the used car economy offers plenty of options. Most of us are familiar with the hype that hybrids and EVs are the future. However, the popularity of these ultra-fuel-efficient vehicles isn’t as strong as projected. According to the latest data from iSeeCars.com, used EV prices are down 33.7 percent, and 60% of the inventory is under $30,000.
Take Advantage of the Used Car Economy at Car Time Supercenter
If you’re ready to get the most bang for your buck from the used vehicle economy, count on Tucson’s premier used car dealership. Since 1984, our family-owned dealership has helped drivers get behind the wheel of cars and trucks they love as economically as possible. Used car economics are alive and well at Car Time Supercenter with a large selection of quality used cars, low prices, and flexible financing.
There are good reasons people will buy their next used car in Tucson from Car Time Supercenter. But I think we are one of the most trusted used car dealerships mainly because we treat everyone like family. My family has provided quality, dependable local used cars to Tucson customers since 1984, and I’m proud to be a part of our continued success.
Like many family-owned businesses, I grew up going to work with my dad. Falling in love with cars was natural because of my father’s passion, and eventually, I came to love the car business just like him. I officially joined the Car Time Supercenter team in 2012, starting in the finance department. Over the past decade, I’ve learned the used car business and how to treat customers from my family and industry resources.
Today, I oversee marketing, social media, inventory, and reconditioning, so I play an essential role in delivering local Tucson used car buyers the best experience possible. I also help our family business keep up with the times while providing old-fashioned customer service. From attending NADA classes to becoming Allstate certified for back-end products, I continue to learn and add skills to serve our customers better.
