Market Watch: Now Could Be the Time to Buy a Used Honda
Been Thinking of a Civic Coupe or Honda Accord Sedan? According to Industry Analysts, Right Now Is the Time to Pull the Trigger
The new and used car industry is a living and breathing entity. It’s receptive, adaptive, and it often changes its mind like you and I do. And based on the latest research, right now it’s the best time to buy a used car, more specifically, a Honda.
Ever since the 2008 and 2009 recession used car vehicles have been a premium product. In fact, used car vehicles have been dearly coveted by dealerships even more than brand new vehicles. With people hanging on to their vehicles longer, and the lack of good financing deals, customers were reluctant to “upgrade” following the recession. Therefore creating a “shortage,” but that’s changed.
J.D Power told the LA Times, “This is the first material decline we’ve seen since the recession.” Meaning that used car prices have actually dropped and not increased. By how much? 4% on average in comparison to 2015. The J.D. Power’s Used Car Guide claims that prices have dropped for the first time in 14 out of 16 categories of vehicles. Even more interesting, coupes and sedans have taken the biggest hits as consumers move to larger vehicles. As a result, crossovers, SUVs and trucks remain largely unaffected due to cheaper fuel prices.
Leasing rather than purchasing has also played a big role in the market. With most manufacturers offering juicy leasing deals to lure consumers away from used cars, a large influx of three-year-old off-lease vehicles is flooding the market. More vehicles to satisfy demand equals less-peaky prices. Simple supply and demand. The only used vehicle categories that have not been affected by the price drop are mainstream midsize vans and mainstream large utility vehicles. Surprise, right?
Despite fear of fuel prices rising again, consumers most likely won’t shy away from buying larger vehicles. This is largely due to the fact that most manufacturers offer crossovers and SUVs with hybrid or fuel-efficient drivetrains.
As a result, this may be the perfect time to look into that Honda Civic Coupe, or the Accord Sedan you’ve been dreaming of. Consequently, you can forget about the CR-V and Pilot getting cheaper any time soon.
Time to go shopping!