Are you among the 75 million Americans between the age of 18 and 30, commonly called Generation Y? Well, a survey claims Gen Y is more likely to buy a used car than a new vehicle. That fact alone could drive used car prices higher while putting pressure on manufacturers to lower new car prices on entry-level models.
According to a Deloitte survey, approximately 63 percent of Gen Y respondents believe used cars are a greater value than new cars and they're more than three times as likely to purchase used cars over new. "Generation Y is typically a group that thinks 'newer is better,' but as the economy is slow to recover and jobs are hard to find, this generation may help reshape the car buying process," said Michelle Collins, vice chairman and U.S. automotive sector leader, Deloitte.
So, more young people are going to be shopping for used cars. As less new cars are sold, the demand for used cars increases and prices rise. However, manufacturers want to sell new vehicles, so entry-level prices are probably going to drop. That could increase the demand for new cars, which means more used cars on the market and lower prices. See how confusing all this is?
And, speaking of confusing, the survey shows Gen Y buyers are considering buying SUVs but are also concerned about a vehicle's impact on the environment. Seems like a bit of a disconnect, doesn't it? Maybe that's because I was among the last years of the baby boomer generation.
Is buying a 1996 buick reveria with 175,000 miles on it at the price of $2,800 a fair price and if so what should i ask when when writing an agreement like ownership wise what should be on the contract. Thanks
Tough to answer the value question without knowing more – but it seems like a high price based on some preliminary research at Edmunds.com. Also, is this a private sale or dealer sale? Two places to look for advice are questions for dealers and questions to ask private sellers. Keep me posted on how things go.
Keith
Your Guide to Used Cars
No one can truly predict is buying a used car is a good value, beause all cars need repair at some point, and when the time is obviously varies. That’s why an extended service contract can be a great investment. Take the long term policy (say to buy coverage for an additional 50,000 – 60,000 mles at least)…and make sure the insurace company will stand behind the contract (no matter what happens from the dealer) , and is comprehensive enough to cover most repairs (please take teh time to read the fine print) . The good companies do not limit the number of reapirs, so even if your used car needs a little “surgery” to get running right, at leasy you can limit your costs to the deductible. It may seem boring to do, but do a little hmework, and your all set.
I am technically outside the generation ‘Y’ definition – but recently did buy a used car. Have documented the experience at
http://eone.vox.com/library/post/jan-11-my-used-car-buying-guide.html