Arab Today, arab today auto buyers face changed landscape
Last Updated : GMT 04:41:48
Arab Today, arab today
Arab Today, arab today

Auto buyers face changed landscape

Arab Today, arab today

Arab Today, arab today Auto buyers face changed landscape

Chicago - Arabstoday

“This is not your father’s Oldsmobile,” one domestic carmaker once told consumers in advertisements. Well today, this is not your father’s car-buying market. Some conventional wisdom, traditional financial advice and automotive truisms are out the window in what has become one of the wackiest car-buying markets in a generation.Some lightly used cars cost almost as much as new cars; some models from Japan are scarce after production was disrupted by the earthquake and tsunami there; and leases, which virtually went extinct a few years ago, are back with a vengeance.“Right now we have such a unique set of converging events, pressures and dynamics occurring,” said Rick Wainschel, vice president of automotive insights for AutoTrader.com, an online marketplace for new and used vehicles. Here is some advice that doesn’t necessarily hold true in today’s market.You can still save a little money buying a 1- or 2-year old model, if you can find one. But used cars are so hot right now, especially fuel-efficient ones, that you’re unlikely to save nearly as much money as you used to.“One of the biggest differences in the market today is the values of late-model used vehicles are really at all-time highs,” said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book.For example, a year-old Ford Focus in 2010 sold for $9,625. Now, a year-old Focus would sell for $12,825, up 33 percent, according to Kelley Blue Book. Similarly, the Hyundai Elantra is up 36 percent. Most dramatic: a year-old Toyota Prius sold last year for $15,650. Today, a year-old Prius is valued at $21,850, up $6,200, or 40 percent. The Manheim Used Vehicle Value Index, a monthly barometer of used-car prices, was near a record high in June, bested only by May.“The level and steepness of the run-up has been unprecedented,” said Tom Webb, chief economist at Manheim Consulting. Used compact cars, in particular, are selling for about 20 percent more than last year, according to Manheim.“In a lot of cases, 1- to 2-year-old cars have been approaching new-vehicle pricing,” Gutierrez said. “That is something we’re not used to seeing in the new-car marketplace. Usually, we would advise consumers to buy a 1- to 3-year-old vehicle. That, quite frankly, is just not the case anymore.”Used cars cost more because they’re in short supply. Consumers are holding onto vehicles longer, sluggish new-car sales in recent years led to fewer used cars now, and fewer vehicles are coming off consumer leases and from rental fleets, Webb said. Even vehicle repossessions are down, as banks clamped down on auto lending standards, essentially making sure that consumers didn’t borrow too much money. That has kept the repo man at bay and used cars out of the market.Conventional wisdom says you’ll get far more for your vehicle if you sell it yourself, rather than accept a dealer’s trade-in offer. But today, with used cars in demand, dealers are offering top dollar for trade-ins, especially for desirable models in great condition with low miles. That tightens the dollar gap between trading in a vehicle and selling it yourself, which involves far more hassle.Higher prices affect used-car dealers too. They must pay higher wholesale prices at car auctions. So they’re likely to be a lot more interested in your trade-in.“Dealers are willing to pay more for a trade-in they can see and value, rather than taking their chances at the auction,” said Larry Gamache, spokesman for vehicle history information service Carfax. “Dealers are 100 percent more willing to appraise trade-ins more generously.”Gamache said he recently traded in a 2004 Jeep Wrangler. The trade-in value was about $1,000 less than what he might have gotten as a private-party sale. While the difference is not chump change, it just wasn’t a big enough difference to be worth the hassle of selling the vehicle himself, he said.“If you have a clean car right now with the right miles for the age of the car, there’s no telling what it could be worth,” said Bob Wasik, general manager at Oak Lawn (Ill.) Toyota, who has been dealing with low inventory for both new and used cars. That’s especially true for hot models, such as the Prius hybrid, he said. Dealers are able to sell a used Prius for nearly the price of a new one because supply is so limited. From / Gulf Today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today auto buyers face changed landscape Arab Today, arab today auto buyers face changed landscape

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 01:06 2017 Monday ,20 February

Dubai set to be leader in driverless mobility by 2030

GMT 00:36 2017 Monday ,20 February

Abu Dhabi merges key parking sectors

GMT 11:19 2017 Sunday ,19 February

Syrian Khallouf Trading Company launches two new cars

GMT 10:37 2017 Thursday ,16 February

Motorsport fans encouraged to buy GP tickets

GMT 13:21 2017 Wednesday ,15 February

200 Teslas to join Dubai Taxi fleet

GMT 21:20 2017 Tuesday ,14 February

Tesla brings electric cars to supercar-loving UAE
View News in Arabic - Auto: أخبار السيارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday