Posts

Understanding the Used Car Market Today

 Embarking on the journey to buy a used car can feel overwhelming—but knowledge is power. Let’s dive into the current market landscape and equip you with insights to navigate it wisely. 1. Recent Trends in Used Car Prices The average price for a 3-year-old used vehicle has climbed significantly, reaching over $30,500 in early 2025 , marking a 2.3% increase from the previous year The Washington Post AP News . Despite the ongoing price surge, used cars continue to offer a cost advantage over new cars, with typical monthly payments averaging $550 for used vs. $741 for new The Washington Post . These higher prices are driven by constrained supply, particularly for near-new trade-ins, which are now averaging 7.6 years old , the oldest on record, reducing the number of quality used vehicles entering the market AP News . 2. Inflation and Hidden Market Pressures The gap between new and used car prices is narrowing. With new cars often inflating past $50,000 , shoppers fa...
Post a Comment
Read more

Cost Considerations: Depreciation, Financing, and True Ownership Costs

 Owning a car comes with more than the sticker price. Let’s break down depreciation, financing, and recurring ownership costs so you can make informed decisions. 1. Depreciation Dynamics Traditionally, a new car loses about 15–20% of its value annually , often up to 30% in the first year Wikipedia . Interestingly, due to recent shortages, certain vehicles have even appreciated in value right after purchase—reversing long-standing trends Wikipedia . 2. Loan Terms and Interest Rates Used car buyers typically face higher interest rates—often around 11.62% , compared to 6.35% for new vehicles MarketWatch . Many buyers now opt for longer loan terms (72–84 months) to reduce monthly payments, but these lead to higher total interest, negative equity, and extended ownership of a depreciating asset The Washington Post . 3. Owning vs. Buying Strategy The American Automobile Association (AAA) reported (though in 2019) that annual vehicle costs—including depreciation, fi...
Post a Comment
Read more

Buyer Protections: Title & History You Must Check

 Protecting your investment means knowing the vehicle's background. Here’s how to avoid scams tied to a car’s title and history. 1. Salvage Titles: Risks & Realities A salvage title indicates a vehicle was seriously damaged and deemed a total loss by insurance. Such cars are typically worth 65–75% less than a comparable used vehicle without this mark Wikipedia . Even if restored and passing state inspection, the rebuild or salvage title stays on record, affecting future resale and insurance. In some states, title branding may even be washed away by changing jurisdictions—this is known as " title washing " and can mislead unsuspecting buyers Wikipedia . 2. Odometer Fraud: Mileage Lies Rolling back the odometer (also called "clocking") remains a serious crime . The U.S. Department of Transportation found that up to 450,000 vehicles per year are sold with tampered mileage, costing buyers more than $1 billion annually Wikipedia . Warning signs i...
Post a Comment
Read more