For cash-strapped consumers – or those adding a second or third vehicle to the family fleet for that matter – buying a used car rather than a new one is typically a decision made out of pure necessity.
It's easy to see why: The average transaction price for a new car hit $31,252 last month according to TrueCar.com, which leaves a large number of U.S. households priced out of the new-vehicle market. A prudent, median-income household is able to afford only 54.8 percent of the average new-car cost, according to the latest Auto Buyer's Affordability Index compiled by Requisite Press.
Not surprisingly, CNW Market Research predicts 41,250,000 used vehicles will change hands this year; that's up slightly from 2013 but is still down from its most recent high point of 44,138,263 units in pre-recession 2005.
The good news here is that used-cars are expected to become progressively more affordable as a growing number of consumers trade in their current models for shiny new rides. Prices are predicted to fall to their lowest levels in nearly six years after an unprecedented period of inflated market values following the 2008 economic collapse and subsequent inventory shortage. By 2017, the valuation experts at ALG forecast the average new vehicle will retain 49.4 percent of its value after three years, compared to the 54.6 percent retention recorded for pre-owned models through mid-year 2014.
In the meantime, used car shoppers can find some solid – and in some cases unexpected – deals on some of the top-rated used vehicles that can be expected to deliver many years of faithful service.
To that end the folks at the used-car shopping site iSeeCars.com compiled a list of 10 used vehicles from the 2008-2012 model years that are not only expected to have among the longest life expectancy – 200,000 miles or more when properly maintained (based on an earlier study) – but were found selling for around 10 percent below their average market value.
The list includes some of the industry's most popular models, including the Ford F-150 and Chevrolet Silverado full-size pickup trucks, and the Honda Accord and Toyota Camry midsize sedans. We're featuring the full list with accompanying data in the accompanying slide show.
In Pictures: 10 Best Deals On Long-Lasting Used Cars.
As always, our old partners in crime – supply and demand – play a major role at determining the best values in the used-car market. In general, the proliferation of short-term leasing over the last few years, combined with the aforementioned upswing in trade-ins is flooding the used car market with fresh inventory. Models that were top sellers when new tend to be especially plentiful in the used-vehicle market, which helps keep their resale prices affordable. And some inherently less-popular – but still worthy – used cars tend to come with a built-in discount based largely on their demand, or relative lack thereof.
"Because so many of these popular, long-lasting models are priced below market value right now, consumers who buy one of these cars are essentially getting an instant coupon for about 10 percent off," says iSeeCars.com CEO Phong Ly. "Consumers purchasing these cars now can not only get a great deal, but can feel confident they are selecting a reliable vehicle that is going to last a long time."
Again largely influenced by market forces, you won't find a single used compact crossover SUV on the best deals list, presumably because the red-hot nature of that segment is keeping resale prices high. Similarly, with small cars continuing to be in peak demand, especially among budget conscious used-car buyers, only a single compact model carries enough of a discount to make the list, namely the top-selling Honda Civic.
All of the models represented come from domestic and Japanese brands, specifically Ford, General Motors, Honda/Acura and Toyota. Part of this is likely due to the lack of representation among upscale European models in iSeeCars.com's previous study of highest-mileage used cars upon which the current best deals list is based. High maintenance and repair costs limiting appeal for such models in the used market was said to be a factor there, combined with a tendency for owners of luxury models to pamper their rides and drive them for fewer miles than the average family car.
In Pictures: 10 Best Deals On Long-Lasting Used Cars.
The Fine Print: In an earlier study, iSeeCars.com analyzed 30 million used-car for-sale postings over a one-year period for vehicles from the 1981 through 2010 model years and those with over 200,000 miles on the odometer. A list of "longest lasting" used cars was compiled based on the percentage of 200,000-mile cars up for sale (assumedly still having some life left in them for subsequent buyers) for each model line relative to the total number of units listed.
Here, the statisticians studied around 400,000 listings of the previously determined longest lasting entries from the 2008 to 2012 model years, that were posted between April 1 and August 1, 2014. Among those vehicles, iSeeCars.com selected the top 10 models that had the greatest number of cars for sale that were offered at the highest rates below market value. "Market value" is determined using a mathematical algorithm that analyzes similar cars for sale in the same geographical area–those with the same year, make, model, trim, options, mileage, and other factors.
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Source : http://www.forbes.com/sites/jimgorzelany/2014/09/11/the-best-deals-on-the-longest-lasting-used-cars/
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