As new car sales continue to spiral downward, the rise in used car sales is no shocker.  In a study conducted by Manheim Consulting, their Used Vehicle Value Index has reached a record high at 118.5 for the month of September, a 1.8% increase over August’s figures.  After nine months of increases, the Manheim index has extended upwards by 6.9% in the pervious twelve months.

With the increased interest in purchasing used cars over new ones, the available supply of used cars is dwindling.  As fewer people are buying new cars, the trade-ins offered by dealers are not as common as they once were.  The impact of the Cash for Clunkers program has also effect the used car market, as these cars were sent to local car crushers and not offered for sale as used vehicles. September was a big month for used cars. with a smaller supply for used cars in the market – there has been a noticeable increase in fraud and scams. Read more on this here.

The Manheim reports also show inventories being down, in both used and new cars, offering an explanation of the decrease in incentives offered to buyers of new vehicles.  With fewer bonuses and deals being offered on new models, many consumers have taken their search for a new car to the used section of the market.  Increased mileages on the used cars available have been noted, as in January the average used car on auction had 51,000 miles on its odometer, whereas the average is now 63,000 miles.

With fewer used car available on the market and increased mileage on those available, car makers are entertaining bold new volume projections for the coming year.  For more information about the statistics of the automotive marketplace, visit Manheim Consulting and their valuable used vehicle index.

When considering a large investment like that of a used car, it’s important to enter into the dealings well informed. By taking the time ahead of time to make sure that the deal you’re entering into is a good one, you can save both money and headaches in the future.  As private sellers cannot certify or warranty the used cars they are offering for sale the way dealerships can, it’s okay to ask lots of questions about the upkeep, maintenance and other aspects of the vehicle before agreeing to purchase it.

What should you consider when buying from the owner?

When you approach a used car for sale by its owner, be aware that

you are buying the item as-is.  While certain people do sell used cars with no flaws or reasons to be getting rid of them, possibly just because they’d rather have a newer model, others may be selling a troublesome automobile to be rid of the headaches.  While some states require that an owner disclose any known problems before selling a used car, this also requires you to trust the person who is selling the car.  If you are not comfortable with them, you will not be comfortable with the deal.

Owners can use various methods to put a price on their car, often referring to dealership prices for similar cars as a basis.  While the dealership can offer warranties, guarantees and other protections, the private seller cannot, and their price should thus reflect this.  Customer satisfaction is not an issue to the private seller, as it is with a dealership.  By knowing ahead of time what type of risks you’re taking in dealing with a private individual, you can often negotiate a lower price to balance out the risks.

By taking all these factors into consideration, it may prove to be a better choice to go with a proven dealership rather than a private seller when shopping for a used car. Read more about dealrships and the ways to protect yourself from scamms here.

Yes, it is possible to find a used car for under five hundred dollars, with the help of  www.cars-under-500-dollars.info

Looking at the automotive market, one can consider new or used for their next car purchase.  Which is better?  Let’s take a look at this from an economic perspective; The new car loses value immediately after leaving the dealer lot.  Cars in general are considered a depreciating asset, meaning they lose value over time.  If any car will lose value over time, why not start with one that’s already lost a little of that value and find a great deal on a fine used car?  Combined with concerns of maintaining the car and its value, a used vehicle can be a smarter option, as the original owner has already taken the biggest decline in its value.  Often in fabulous condition, some still under warranty, and at a much lower cost than a new model, used cars can be a brilliant choice.

Later model cars can be found from many sources, such as used car lots, dealership trade-ins and online.  Places like Carmax specialize in used car sales online, while the popular auction site Ebay.com offers many cars for auction, mostly used.  Auctions can be a great source for used cars, such as those confiscated by police, repossessed by banks or by specialized car auctions.  When a rental car service changes over their fleet, the old cars are often auctioned or sold at very reasonable prices as well.

When looking at used cars, knowing about the Kelly Blue Book value of the model and its fuel economy can be important factors to consider.  Knowing the condition can effect the cost immensely, so be keenly aware of any flaws, problems or troubles with the vehicle before offering a price.  Also, keep in mind that a private seller does not have the overhead of a car dealership, and can more inclined to haggle. It is vital that you educate yourself on this topic to avoid being cheated. Read more about this critical topic here.

Financing a used car is another option, though this generally requires shopping at a dealership.  Better deals can be found if you can save up and purchase the car with cash, and this can save you a considerable amount in the long run.  Whether you’re looking for a luxury car to be proud of or a just a basic point-a-to-point-b ride, being informed and prepared can make the car buying process much easier.