Used car prices have been at an all time high for the last few years and in many cases it has been more attractive to buy new cars rather than preowned. With the “cash for clunkers” a few years ago and the economy forcing most of us to drive our cars longer than usual, the supply for used cars did not meet the demand.
Now that the economy seems to be on the rebound, more consumers have found their way back into the new car showrooms and some manufacturers are having a hard time keeping up with the demand for new cars. Like most commodities, when supply is low and demand is high, the auto dealers and manufacturers are less likely to discount their inventory. Ford, for example, is having a hard time keeping up with the demand for the Ford Fusion, hence no real rebates or incentives are being passed on the buyer.
With all the new car sales that we’ve seen this year, there has been an over abundance of vehicles being traded in at the dealers and the dealer’s have to get rid of them. What we have here is overstock and prices will begin to fall to move the excess inventory.
If you don’t have to have a car right now, waiting until the Q4 (Oct. – Dec.) may be the best time to get that 2-3 year old certified preowned vehicle with the fairly comprehensive warranty coverage.