One of the most common knocks against used cars is that they don't hold value in the long run. The thought is that even if you buy a high-quality vehicle, its value depreciates so quickly that within a few years it won't be worth much at all. However, this isn't entirely true.
Depreciation slows for used cars
A new report from the NADA Used Car Guide showed that the value of used cars is staying high. According to the organization's latest study, pre-owned vehicles currently on the market retained much of their value throughout the past month. Not to mention, the NADA Used Car Guide predicted that sticker prices will continue to drop in December, providing some chances to save.
"Usually wholesale auction volume decreases during this time of year – and it did, again. This time, however, it fell even a bit more than normal." said Jonathan Banks, an executive analyst for the NADA Used Car Guide. "If there are less used vehicles in the marketplace, then competition increases, and values hold a little better as a result."
If this trend continues, it could mean good things for drivers – if they're smart about their purchases, that is. Trade-in values would be higher, allowing motorists to put more money toward a car upgrade. Those funds can go toward a down payment on a used car, which in turn leads to lower loans and monthly payments.
Higher quality doesn't mean higher prices
Some drivers may be worried that more competition results in bigger price tags for used cars, but that doesn't have to be the case. When people take advantage of auto auctions and bidding, for instance, they have an opportunity to get a quality car at a great price. They can also negotiate loans and find a repayment plan that allows them to keep expenses in check.
If you're searching for used cars that will offer you plenty of value, look no further than NJ State Auto Auction. This lot has hundreds of Carfax-certified used cars, trucks and vans, and many of these options have desirable features and low prices. So even if the average cost of used vehicles goes up, you can do your best to keep expenses down and capitalize on low monthly loan payments.