Used Auto market

 In Business, Financial News

Used cars have risen in price, but so have new cars. Used cars though have lost some attraction, such as warranty and tax incentives for electric cars. The Used car market is also being taken over by secondhand dealers such as CarMax and Carvana has increased their inventory, pushing the prices for newer used cars higher attributing to the skewed statistics. You can still get that smoking deal but you are going to have to go through a private sale, and mostly deal with cash or you can explore financing. Financing has started to become a little more difficult to obtain, with used cars and fetching an interest rate of over 6% on average, compared to new cars coming in as low as 3%. Some cars with the most depreciation are High-end sedans, such as BMW’s and Mercedes’s non-special edition losing up to 30-40% in 1 year.

Biggest loser I could find: 2010 Mercedes Benz S65 AMG Retail 270K dollars, Currently available for 35,900 with 95k miles, costing about two dollars and fifty cents a mile. WOW

If you’re planning on buying a car, used is still a very good option. Companies like Mercedes Benz offer unlimited mileage warranties on CPO (Certified Pre-Owned) vehicles. CarMax offers extended 100k mile warranties on any cars for a fee.

Unfortunately, many people are trapped in underwater auto loans with high-interest rates that hurt their credit and decrease their spending power, ultimately hurting the economy. So, shop wisely and find the best long-term value.

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