New cars are ordinarily expensive, but recent trends have sent prices surging beyond what is normally expected. While this may seem irrelevant for people shopping for used cars, it's still important for drivers to know, as many of the financial aspects are tied together.
In December 2014, the average cost of brand new car models continued to rise, according to a report from Requisite Press, LLC. The data indicated that a combination of consumer confidence, low gas prices and many credit options led to climbing price of new cars.
Prices go up in December
According to the NADA Used Car Guide, the high cost of new vehicles is beginning to affect the used car market as well. A surge of quality trade-ins, which are being sent to used car lots as owners purchase new models, has raised the average price of these pre-owned vehicles.
"For the first time in 20 years, wholesale auction prices of used vehicles actually increased during December," said Jonathan Banks, an executive analyst for NADA Used Car Guide. "The 0.3 percent increase during the month is significant … since the average price for December the last 10 years has seen a 1.4 percent drop."
Although the month of December saw prices grow, there are many opportunities at the beginning of 2015 for drivers to save, Requisite Press, LLC reported. An increasing supply of used cars, as well as more subprime loan offers, should help to get drivers behind the wheel of a vehicle they want.
What you can do
The good news for drivers is that they don't have to place excessive limitations on themselves when they shop for used cars just because of high prices. USA Today noted that high demand is raising many expenses related to these pre-owned vehicles, but the sheer number of used cars on the market should keep prices in check. The NADA Used Car Guide reported that the low cost of fuel and upcoming tax refund checks will likely make a purchase more attainable.
Those who are smart enough to go to a facility like NJ State Auto Auction can capitalize on lower prices and affordable financing options. With the help of an in-house financing department, drivers can get guaranteed credit approval, allowing them to purchase the car they want without throwing off their entire budget.