More and more people are buying used cars than ever before. The difference in price between a new and used vehicle is lower than it’s been in a long time. Purchasing a new vehicle versus purchasing a used one in Denver may only result in a monthly payment difference of $20-$60 a month! There’s a lot of competition for the used car market from not only other customers but other used auto dealerships in Denver.
Better Used Car Values
More and more cars are built to last well into the 200k range. Used cars for sale with over 100k on the odometer don’t carry the stigma they used to in thinking that they might break down. Because automobiles are breaking down less and less, buyers aren’t entering the market as quickly as in the past.
Cars are so well built now that you can rely on them more than ever before! Fewer people these days are trading in their cars for newer models because it’s much cheaper to stick with what you have. People are more cognizant of the fact that if they trade in a used vehicle for a new one, they’ll be losing money. This is can result in higher monthly payments on your next loan and losing even more money by being upside-down on your purchase. The more often you trade in your vehicle the more money you’ll lose over the long run.
Sale sale sale!
Ever since the recession hit the country (Denver included), people are more thrifty than ever before and more willing to pick the better deal rather than the shiny new toy.
The government’s cash for clunkers program several years ago took a lot of used inventory off of the market. There are simply a lot less units for Denver dealerships to buy and then turn around and sell. Because there are fewer places for dealers to buy cars, more and more buyers are bidding on the same inventory.
Buying a Used Car
The $1,000 reliable used cars that would get you from point A to point B don’t exist anymore. It’s become harder and harder to even find a $2,000 used car for sale that will last you longer than a few hundred miles. Used cars for sale in Denver are no different. Websites like Craigslist are flooded with people all over the metro Denver area trying to dump their cars with mechanical issues. Buying from a private seller is risky if you don’t know how to assess mechanical problems.
The price increase actually somewhat helps. Denver used car dealerships are willing to put more money into fixing a car than they did in the past. Used vehicles are so high it makes more sense for the dealership to put money into keeping their current inventory running rather than buying more. While this will increase the reliability, the dealership has less wiggle room to put them on sale. Even though you’re paying more, the car you drive will last much longer than before.