As the car market changes, the secondary car markets - such as used car market - is also heeding the changes. The current demand is for low mileage vehicles, even in the second hand market, and used car salesmen are taking notice.
The current car market is in a state of flux. The recent recession has caused major demand shortfalls from Japan and the increasing legislation regarding efficient mileage is exerting pressure on an already volatile market. Negotiations for trade-ins often are done in mere minutes especially when your car is considered a premium used car.
A premium car in today’s market is smaller and more fuel-efficient cars or older model hybrids or electric vehicles. These cars are between two to five years of age.
These cars command prices. In August, the average trade in value for these premium cars was at $10,489 while midsize vehicles sold for $12,529, while midsize luxury cars sell for an average of $25,426. These prices though are not one off purchases by dealers and are often attached to an eventual purchase made by the car owner.
There are many reasons for higher demand for these premium vehicles. These include downsizing, newer technology and safety features or lease expiry.
There is also a clear demand for older or first-generation hybrids or electric vehicles. This comes after newer models come off the showroom, the first hybrid owners now want the newer technologies offered in the latest models. After their purchase they sell off their old alternative fuel vehicles that are then snapped up in the market. Even auto leases have been offered outright purchases of their older hybrid vehicles for a premium price because of the clamor from the secondary market for hybrid or alternative technology vehicles.
Clearly, the electric car revolution is having its trickle down effect. While the greater majority of the car owners may not have the purchasing capacity to buy the latest electric vehicle, the secondary market now provides the opportunity to own one fuel efficient or alternatively fuelled vehicle in your own garage.