Fuel efficient cars like the Prius are on Demand
Although the rule of thumb says that a car loses at least 10 percent of its value the moment it leaves the dealership,things are turning around as more Americans are considering used cars that are fuel efficient .
Apparently,used cars that are fuel efficient are suddenly on high demand .Yes ! High demand .
So what has suddenly raised the value of used cars beating the old known adage of ” A car loses at least 10 percent of its value the moment it leaves the dealership” ? No other reason apart from the always escalating gas prices making Americans awe about what next to do .
Matter of fact most Americans are hesitant to pay for a new car. According to auto analysts who track prices used cars over all are retaining a higher percentage of their original value than ever before.
The the National Auto Auction Association has noticed that compact cars that are one to five years old are worth, on average, about 30 percent more on the wholesale market now than just six months ago .
Lets look for example at a three-year-old Focus which retained just a third of its original value, a difference of more than $5,000. And the value of a 2010 Chevrolet Aveo LS (highway mileage: 35 m.p.g.) by $3,448. Seen the stats people ?
The main factor which is making many consumers seeking a higher-mileage vehicle to consider a used car as more affordable than a new one stands to be that of unprecedented gas prices.
Added to all that ,there are shortages of Japanese models at many new-car dealerships because of the March earthquake and tsunami, prompting some shoppers to check used-car lots instead.
The biggest gainer ,the Toyota Prius a hybrid car, which was offered at big discounts last year but regained popularity as gas prices climbed. The Prius is in particular demand because the Japanese factory that builds it closed for a month after the earthquake and tsunami.
According to the National Auto Auction Association,if you want to buy a fuel efficent used car ,check out their unbiased resource guides.These guides are freely available for download from their website here .They have guidelines of 2011 and earlier editions from last year as well .
According the the New york times ” Mr. Shen, 30, found a buyer who paid $25,500 for his 2010 Prius II. He had to spend $1,000 on repairs and pay a fee to the dealer because the car had been leased. Even so, his net take on the deal was $121 more than he paid for a 2011 Prius II — and the new car came with hands-free Bluetooth phone connectivity, a feature his old car did not have.”
Mr.Shane was quoted saying “I think it’ll be the only time I ever make money on owning a car .”
Well ,with that lets brace ourselves for the ever increasing fuel prices.But as noted from above,buying a fuel efficient car is a good practice on the way to saving bucks in the long run.
Article sources quoted include:
The Newyork Times’s “Used Gas Sippers, Keeping That New-Car Value”
Gist.org’s Used fuel-efficient compact cars increase 30 percent in value
