Used Cars Mississauga I’m going to look at why used car demand is booming, from both a supply and demand perspective. If you’re looking for a specific model, you will probably have no trouble finding one in your area. The question is whether there will be enough of them to satisfy new buyers in the coming months and years. Read on!
Why are people excited about used cars?
(For this article I’m going to start off with a few graphs that illustrate why it’s hard to find good quality used cars right now versus how things were 10-15 years ago.)***
The two charts show the percentage of all new vehicles sold that were previously owned at different times over the past decade. In 2008 and 2009 (the highest percentages shown), millions of people were buying luxury or sports cars that they couldn’t afford on their own.
This is what it looks like when dealer inventories become too low compared with sales:
And this is what it looks like when there aren’t enough trucks to deliver used cars as fast as customers are waiting for them:
If it ever comes time for another recession (whether from natural causes or a financial crisis), dealers may not have enough trucks available to deliver inventory quickly enough.
Used car demand is soaring
Belleville Car Dealers used car demand is soaring. In fact, used-car prices are rising faster than new ones as more people opt to buy them instead of new cars. This trend is due in part to the fact that used cars are more affordable than new ones: you can drive home a late model Acura with under 30K miles on it for around $15K—about the same price as a brand-new Kia Rio with no options.
The pandemic has made it harder to build reliable supply chains
The pandemic has made it harder to build reliable supply chains. In the past year and a half, there have been two major outbreaks of Ebola and Zika. Due to this, many companies have been forced to shut down production lines or suspend operations altogether in order to minimize their risk of exposure. This has affected the supply chain for both new cars as well as replacement parts for existing vehicles (which means fewer things being sold).
It’s harder to build cars right now, too
As you may have heard, the American auto industry is in the midst of a major shift. Automakers are struggling with how to address climate change and air pollution while also ensuring their cars continue to be affordable and reliable.
The problem has been exacerbated by the pandemic. With supply chains strained, it’s harder than ever for automakers to find parts they need. And when they do find them, there’s no guarantee that those parts will be delivered on time or even at all—which means automakers can’t build cars as fast as customers want them.
There’s a big difference between shopping used and actually buying
There’s a big difference between shopping used and actually buying it. The reason that it’s so hard to buy a used car is because there are many factors involved in the process, from finding something you like, to testing it out and then negotiating a fair price. If you’re considering buying an older model with low miles on it, then you’ll likely need some extra cash up front (which can be tough if your credit isn’t great). And if your budget has already been cut by other costs related to moving out of your home or getting married/having kids—as well as any money lost from job loss—then finding financing might not be so easy either!
If you know exactly the model you want and can afford to pay a premium, now might be a good time to buy. But if you’re like most people and want to shop around for the best deal, it might make sense to wait until supply catches up with demand.
Conclusion
Buying a used car can be a good way to save money, but it’s also important to remember that buying used means you’re taking on more risk. While there are some great deals out there, buying a car from someone else comes with its own set of problems and headaches. If you’re looking for a new ride and don’t want to spend too much money upfront, shopping around online or at auctions may be your best bet.
