When thinking in the future about your buying a used car, it’s important to look at the numbers. Car prices tend to go down between November and January, and then tend to quickly shoot back up in the month of February. These statistics were gathered by price trends on more than 12 million used cars.
The difference between August (the most expensive month) and January (the least expensive month) is pretty mind boggling. You can save over 5% just by timing your purchases to when cars will be the least expensive. This can amount to up to $1,000 on a $20,000 purchase!
There are many reasons as to why prices could drop near the end of the year. The first could be simple economics - as more people buy new cars at the end of the year, they trade in their old vehicles. As supply increases, the price drops. The amount of people in the market for a used car is typically much lower in the winter months, as well.
Another possible explanation is that your car becomes one year older in January (at least, on paper it does), which could lower its selling prospects. As many owners seek to sell their cars in the months leading up to the new year, prices drop.
Whenever you decide to purchase a new car, it’s important to know you’re getting your money’s worth. Fiix provides used car inspections, which can help you know the state of your car you’re purchasing. Schedule one today at www.fiix.io, or call us at 647-361-4449.
