Prices for Used Cars at Four-year Low and Car Supermarkets Are the Main Beneficiaries

Online, November 19, 2013 (Newswire.com) - Recent analysis has shown that lots of new car buyers have flooded numerous showrooms since they offer low costs of used cars,hitting a four-year low. According to Edmunds.com, a pricing website, around 15,617 used cars are sold as an average at a particular franchised dealership in the 3rd quarter. Costs have been lessening for most of the year and by the 3rd quarter, it has an average of 2.8 less from the 2nd quarter and down 0.9% from th3e same quarter last year.

Car supermarkets has been effective to all potential used car buyers since it showcases different models of cars in a dropdown pricing approach. Tom Kontos, a used-car price watcher of Adesa Analytical Services, noted down a little uptick in wholesale prices in October and the overall summary is that the trend is down. There are lots of reasons why prices are dropping over the car supermarket. For new car sales, these new car sales by certain car dealers are on track for exceeding fifteen million. Thus, it does not entirely click compared to the past decades and the top prize is meant as a flood of trade-ins.

In order to move them out, cars dealers have to cut prices and move out used cars automatically out of the car supermarket. By the year 2010, inexpensive lease deals are abounded and auto dealers were keen to get those latest cars into the hands of recession-weary owners who just could not make or are hesitant to the buy price payments. Thus, these leased cars came back as used cars to be sold at car supermarkets. This pricing approach is for better economy purpose. During the recession, drivers who were held out are now ready to throw in the towel and purchase newer used cars from any car supermarket.

A better economy and lower unemployment rate make it easier for anyone to purchase used cars. Thus, loan rates are also low and in this way, anyone can have their car loans at a minimum rate cost. These lenders are freeing up money to use for purchasing a semi used car for convenience. Richard Arca, Edmunds.com senior pricing manager, cautioned everyone that used car prices are still not as low as the prices a decade ago. Prices of late model used cars are still so close to the cost of new cars. In this case, it's quite convenient to buy new cars than old model used cars.