Used Prices Drive Consumers to Buy New: Survey

Used Prices Drive Consumers to Buy New: Survey

Results from a new survey from Kelly Blue Book is suggesting that 53 percent of consumers are considering buying a new car over a used model despite conventional wisdom advising otherwise.

Used car prices crept up to unusual highs this year as off-lease vehicles grew scarce in an aftershock of the 2008 financial crisis and the subsequent lull in vehicle lease demand. Coming full circle after the typical three-year lease would expire, a meager crop of cars returned to roost, driving prices up commensurate with demand.

Apart from that, automakers are offering increasingly attractive warranties to back new models. Safety features are also improving rapidly with electronic stability control becoming standard equipment in all 2012 models. Other features like blind spot detection systems are finding their way into more, and lower cost, cars.

Finally, fuel economy is improving so significantly in new cars that according to the survey, 44 percent of people are looking at buying new purely for the fuel savings. It makes sense given that the Obama administration recently passed its rule for a minimum 54.5 mpg across vehicles lines by 2025, which means that particular enticement will only grow sweeter.


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