2007-02-26 12:33:29 · 5 answers · asked by michelle h 1 in Social Science ➔ Economics
Because people will be more willing to buy a used car now that they are lower in price. They will be less likely to buy a new car because the used cars have just fallen in price. Also, there will be a greater devaluation if someone buys a new car so people may hold off until used car prices rebound.
2007-02-26 12:39:44 · answer #1 · answered by Hi 3 · 1⤊ 0⤋
All vehicles are worth what the dealers are all in agreement with (it's a racket, much like the gas company) and what used vehicles are worth. The falling prices of used or new means nothing, the difference will be the same, always (think about it.)
People in general will be more apt to buy used cars but by constantly fixing or switching ,they are not saving any more money than buying new. At least with new, you have bumper to bumper warranty , used you always take a chance and hope for the best. The vehicles they make today are destined to fail at certain points (why make them run forever it's bad for business).
The used or new car dealers and manufacturers, are there to make money. It just depends on how much you need them.
The only thorn in their side is the foreign ones, the down fall with them is the initial high cost and higher costs to repair.
2007-02-26 20:57:01 · answer #2 · answered by trojan 5 · 0⤊ 0⤋
If you consider the fact that you can buy a used car for 1/2 to 2/3'Rd's the price of a new one and get the same options. It all boils down to how much your wallet can stand. Are you willing to finance a new car for 5-6 years or buy used and finance it for 2-3?Just the interest can kill you before you get it paid off.
In the 37 years I've been driving I have owned 4 new cars. The last one was totaled by a woman in a huge Mercury Grand Marquis. No more new cars for me, too expensive to insure and too hard to pay off.
Don't let the hype cloud your judgment.
2007-02-26 20:47:45 · answer #3 · answered by Steven D 7 · 0⤊ 0⤋
The lowering value of a prospective buyer's used car for a trade in could keep that buyer from trading in his used car to apply that value to the new car purchase.
2007-02-26 20:39:27 · answer #4 · answered by Jolly 7 · 0⤊ 0⤋
Nobody wants to pay the gap insurance. I'd take a used car any day.
2007-02-26 22:04:23 · answer #5 · answered by sexmagnet 6 · 0⤊ 0⤋