Are Used Cars Losing Their Style?

     Wholesale auto auctions have been the trend for years since the days of the recession. The used car market is much larger nowadays than the new car market. Economists are sensing a shift in the demand from used cars to new cars, as we experience a lower availability of the favored models. That is, the later models of wanted cars with low mileage.

     As the recession took place, consumers heavily leaned on used car dealers to help get deals on the popular cars of that time. This worked for quite a while- up until now. As demand is high for those used cars, dealerships are finding it harder and harder for car dealerships to supply available used cars.

     Since fewer people bought new cars, fewer used cars are available to sell. Analysts say that this is allowing supply of new cars to come closer to meeting demand. With this also comes the rise of the price of used cars as supply shrinks. Now we see almost an equivalent price range for new cars, and used cars.

     There is still hope for used cars, however. In 2016, car analysts are expecting an excess of used car availability due to the increase in leases this year. As the new car leases end in 2016 we will see an inflation in the used car market and therefore a decrease in the prices of our favorite style cars.

     Supply and demand go hand in hand. This is incredibly evident in the car business. During the recession, the demand for used cars increased due to a major shift in peoples incomes. In turn, this caused a decrease in the supply of new cars. Nowadays, however, we see a decrease in the availability of used cars because the new cars have stopped being produced and therefore, used. This clearly means that there will be an increase in the demand for new cars due to the fact that used cars are almost equivalent in the price of used cars. This action is a result of the scarcity of used cars.

     As I read Jaclyn Trop's "After Running Hot, Market for Used Cars Is Cooling" from The New York Times, published recently on October 18th, I found it interesting to be able to personally recall the time period in which used cars first became popular. I remember helping my mom pick out which cars to lease, or buy, and I remember her explaining the idea of used cars to me as a child. Being able to connect the idea of supply and demand with this article has allowed me to further understand why industries are always shifting and having to adjust to peoples demands. Looks like I will be waiting to buy my first car near the year 2016.