If you're on the fence about whether to buy a car, there's some good news. Purchasing a vehicle is always a significant financial investment, but for those who are interested in a used car, the time to purchase may be now. Recent economic recovery has affected the auto market, and as a result, pre-owned vehicle prices have begun to sink drastically.
Increased supply
One potentially unforeseen consequence of the 2008 financial recession was a major increase in the number of cars that were turned over or sold to dealers. As a result, many used car providers have found themselves with an influx of pre-owned vehicles. When the economy began to turn around in recent years, more people had more money to spend, and the increase in number of used cars meant that prices dropped lower than they had been in years.
The start of a trend
According to Reuters, this is merely the beginning of a years-long boom in used car values that drivers considering buying should take advantage of. Estimates indicated that the average price of used cars will drop by an additional 5 percent by 2017, and the National Automobile Dealers Association noted that the average used car would run around $15,000 by 2016.
How buyers can benefit
All this number crunching is good news for buyers, as it means that the time is ripe to head to the dealer and finally take the plunge into car ownership. However, just because prices are low doesn't mean that drivers should rush into a purchasing decision. Making an informed choice when buying a used car is essential. Once you've got the cash, you should make sure to arm yourself with information as well.
Especially with more cars being on the market, prospective buyers should be extra careful to get the details on whichever model catches their attention. Cars.com recommended that knowing a used car's background – its repair history, how many miles are on its odometer and even things like what kind of use the car saw in its past life – is helpful for determining whether a ride is a good investment, regardless of the price tag. Regardless of what kind of a deal you're offered, make sure to cover your bases. Request the vehicle's repair history, take it for a test drive and even have it inspected by an independent mechanic to make sure that you're not purchasing a car that's going to cause trouble for you down the road.
When you're ready to buy a used car, head to NJ State Auto Auction. You'll find hundreds of Carfax-certified cars on the lot, and a helpful in-house finance team that can assist you in obtaining a loan for your vehicle.