Last month, Forbes presented its take on automotive sales regarding used passenger car sales across the nation. As the piece explains, the demand for used compact and mid-size cars, combined with rising fuel prices and overall vehicle affordability constitute the trifecta for this initial paradigm shift with respect to buyers’ habits.
“Families are beginning to second guess and re-think the process of making the switch from their cars to an SUV or truck instead. The average national cost of gas at the pump last month was $2.86/gal, which has opened up consumers to switching towards smaller cars in an effort to curtail increasing fuel costs and keep up with a changing marketplace and economic landscape,” said Nehoraoff.
Compact and mid-size cars have seen the best increases in value, with mid-size vehicles outperforming the market by 3% on average, up from less than 1% this past June. This has been another visual confirmation of the market moving in the direction of staying economical and smaller.
“In spite of all the rising prices of used vehicles, they’ve continuously been a wonderful choice for smart shoppers. These shoppers are snapping them up, and what are normally considered used franchise sales are actually vehicles around 3 years old,” suggested Nehoraoff.
Even though there seems to be an uptick in these types of vehicles being purchased, it’s still limited to what the market will bear as far as units are concerned. The number of off-lease vehicles by year’s end is expected to only increase by 400-thousand units, with a decline of 200-thousand units in 2019, bottoming out at 4.1 million vehicles that fit the compact and mid-size portion of the market.
Nehoraoff explained, “the supply of used vehicles has stayed at a steady high, but the growth in off-lease (maturities) is winding down. There’s a ton of inventory, but if the market continues to skew towards SUVs and pickups, consumers in the market for fuel efficient and affordable cars might find themselves in an awkward position in the future.”
This is the first of many automotive moves by consumers that will continue to shape and modify future car designs for efficiency, safety, and reliability.
About Vegas Used Cars
Vegas Used Cars is the leading provider of quality used cars throughout the city of Las Vegas. They are as committed to quality as they are to having every vehicle on the lot meet the very highest engineering standards. In addition, they offer the most versatile and flexible used car finance solutions for applicants of all financial backgrounds and makeups, willing to finance customers, even with bad credit.
Visit VegasUsedCars.com or call (702) 800-0900 for more information.
Vegas Used Cars
2105 Western Ave, Las Vegas, Nevada 89102