If you have a used car to sell, this is the year to do it. According to CNN Money, the supply of late model used cars (new vehicles in 2008 leased out on the typical 3-year contract) is about to get dramatically smaller.
Car leasing rates dropped in the fall of 2008 as the country fell into the deepest economic recession of our era. Leasing rates plummeted 58% between June and November of that year, and the financing that car dealers need to write new leases disappeared as fears about the future of automakers grew. In 2008, the standard 3-year car lease agreements practically disappeared.
Consequently, the price of used cars has grown significantly since 2008 as supply dwindles. The Manheim used car price index hit a record high this May, with compact used car prices 20% higher this year than in 2010. This is an unprecedented leap.
The Cash for Clunkers effect may also have some bearing on this price jump. With fewer cars available at the lowest end of the used car market as consumers scrapped their old cars last year, those looking for used cars must trade up to newer models.
For used car buyers, this might be bad news. With late model used cars in such short supply, their prices may begin to look more like new car prices. This is especially true now that the stream of new auto part supplies are constricted in the aftermath of Japan’s earthquake. Fewer new car parts means fewer new cars manufactured. The restricted supply of new cars will raise the demand for the already limited supply of used cars, and as the demand for used cars rises so will their prices.
For those with leases about to run out, however, this trend will prove extremely profitable. Many traditional used car dealers are beginning to offer deals to buy people out of leases early. Big Bucks Auto already offers cash for cars regardless of where customers are in their lease. This summer, you may be able to sell your used car for even more than you paid for it on your original contract!
How to Get the Most Cash for Cars This Summer
If you’re looking to sell your car for cash in NYC this summer, those with high-demand, compact or mid-size models will benefit the most. New Yorkers with minimal mileage on their vehicles stand to do especially well on their sale.
Have a car you’d like to sell in NYC? Give us a call toll free at 1-888-44-BUCKS, or get a free quote for your car right here on our website. We’ll help you take advantage of the market and get you the most cash for your car this summer!