Many do not realize how quickly a price can change on a used vehicle. The supply of used vehicles can vary on factors such as trade-ins, lease returns and people selling their vehicles. Demand can fluctuate due to economic conditions, gas prices and buyers preferences.
Believe it! Seasonal trends are a major factor! Use vehicle prices will differ season to season. For example, convertibles will have a price hike during the summer months vehicle prices for 4-wheel drive vehicles will increase in the winter, especially in the northern part of the U.S. Economic conditions, such as booms or recessions can impact market prices. During recessions, people may hold onto their cars long, thereby reducing the supply of used cars, thus potentially increasing prices. Undoubtedly, mileage and condition of a used vehicle will affect its value. A well maintained vehicle with low mileage will typically command a higher price than one of the complete opposite..
The character and reliability of specific vehicle models can affect their resale value. If a recall or negative review of a particular model has been made, this can and most likely will impact its market value. When a vehicle is in low demand because of these factors as well as color, mileage and word of mouth, sellers should expect a decline in prices. As new technology advances in newer cars, older models may lose value more quickly. Features like advanced safety features, bluetooth capability and rear-view cameras can quickly make older vehicles seem outdated. Of course, the average age of vehicles on the road is higher in some regions of the country than others. This can create increased demand for newer used vehicles and possibly increase market value. With changes in government regulations and incentives for electric vehicles can incite popularity and prices of certain used vehicles.
Lastly and one of the most important, especially with all that has been occurring all over the country. Events such as hurricanes, tornadoes,floods, earthquakes and fires can damage a large number of vehicles, which thereby, reduces the supply in that area. If you have been a victim of such a disaster, be prepared to have your vehicle thoroughly inspected prior to selling.
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