Auto buyer interests shifting, used vehicle prices rising
Posted on Thursday, September 12, 2013 at 12:11:33 PM
Making the choice about how to spend automotive financing could be a tough call. There are a number of options out there - from new to used, small compacts to big pickup trucks - but it appears that more people are turning toward alternative fuel vehicles, while prices for used options are on the way up.
Buyer sentiment has shifted, according to Jonathan Banks, executive automotive analyst for the National Automobile Dealers Association Used Car Guide.
"Historically speaking, reliability and unexpected repair cost concerns meant that vehicles over five years of age took a back seat to their younger, in-warranty counterparts in terms of demand," said Banks. "However, rapid advances in dependability over the past decade have changed consumer attitudes towards purchasing older vehicles."
Prices on used vehicles are expected to increase, according to a recent report from the NADA. Cars and light trucks between four and 10 years old might see prices jump up at least 0.5 percent compared to 2012.
Additionally, buyers are spending auto financing more on other options, such as diesel and hybrid vehicles. Data from HybridCars.com and Baum and Associates found that diesels had a 41.8 percent yearly sales increase in August, while hybrids saw an uptick of more than 38 percent.