Use the Drop in Subcompact Prices To Your Advantage

Looking for good, basic transportation? You’re not going to do much better than the subcompact used market, whether you are searching for a used car or a used crossover.

But don’t think you’ll only save in the subcompact used car market. Smart maneuvering will afford you savings in other segments as well…

Both segments (cars and crossovers), according to the latest research from Black Book, which evaluates the used car market by attending hundreds of used car auctions a week, have shown drops in prices far exceeding anything else in the used car universe.

The Black Book Market Insights report identified a tough couple weeks recently for subcompact cars and subcompact crossovers, which are both showing strong declines so far in June. The good news for consumers is this depreciation is expected to continue throughout the coming weeks.

In other words, subcompact used car and crossover prices are going to continue to drop for weeks to come. Does that mean you should delay in buying a sub-compact? Nope, because there are factors in the wind that could make things start to shift quickly.

As the chart shows, fuel prices are starting to tick up again. Gas is still relatively cheap but a bad move by OPEC on supply could suddenly affect inventory and prices. Saudi Arabia is borrowing money, and the economies of other oil-producing nations are suffering as well. The presidential election could also affect gas prices in the coming months. A spike could generate interest again in subcompacts and drive prices back up.

How can you use this information to your advantage, even if you’re not interested in a subcompact car or crossover? It requires a bit of fortitude, but you can save yourself lots of money if you pull it off.

Basically, what you need to do is negotiate the purchase of a sub-compact used car. Strictly negotiate the price. Don’t get roped into determining what you can spend per month–nor do you want to submit a credit application at this point. Tell the used car dealer you have your own financing.

But, right before you pull the trigger on a used Scion iA, for example, suddenly express an interest in a Toyota Corolla. After seeing how value-oriented you are, the dealer sales rep will treat you differently. You’ll still get a good deal while getting a larger car for not much more money.

Also, we are at a point where people are trading in the subcompacts they bought during the last fuel crisis. That means lots of these cars and crossovers are flooding the market, too. Look around your used-car dealer’s lot. Look for the subcompacts or compacts that seem like they have been sitting there for a while.

Dealers don’t want used cars (or new cars for that matter) sitting on their lots for a long time because they cost money. Dealers finance cars just like the rest of us.

Subcompacts have come a long way. They’re much roomier and safer than they once were. Consider them a viable alternative, especially if you don’t have a family to cart around. They’re a strong alternative for couples or singles, especially the subcompact crossovers.

-Keith Griffin

Find Certified Pre-Owned Cars and Used Cars in your area at CarGurus.

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from The CarGurus Blog http://blog.cargurus.com/2016/06/08/use-the-drop-in-subcompact-prices-to-your-advantage
via Car Gurus