Why Buy Now, Part 2

Prefer used cars? Time is right to find a deal.

By Jim Bohen, Star Tribune Sales and Marketing

Last update: March 3, 2006 - 10:11 AM

Confirmed used-car fans prefer the pre-owned option for many cost-saving reasons, but mostly because they know how quickly new models can lose value.

These thrifty souls also know the best times to buy. That's the spring and fall, when there are supposed to be more trade-ins at dealerships because they're selling more new cars, and at year-end when dealers may want to clear inventory off the books.

These days, however, that timetable isn't always accurate because right now is a good time to buy a used car - even though all dealerships aren't overflowing with used vehicles.

Used car prices can actually rise in spring because the supply of vehicles can decline. How's that possible, you ask? Mark Hoel, general manager at Village Chevrolet, explains: "There are fewer used vehicles on our lots in spring and summer because the trade-ins we get for new cars are often older and we don't keep them around to sell to the public."

Mike Roeder, general manager at Sears Imported Autos, which sells BMW and Mercedes-Benz, says prices usually rise for the late-model used cars that dealers buy at February auctions, but prices started rising in January because fewer cars are expected off corporate leases this year. "So there's actually more selection in used vehicles now," he says, "and you should be able to save some compared to what you might have to pay this spring for a used vehicle."

Two other factors make buying a used vehicle worth thinking about now. Those who need towing capacity and storage room this summer can choose from a good selection of low-mileage SUVs and pickups that were traded in when gas prices skyrocketed last fall. And the certified pre-owned programs that almost all carmakers now offer are running strong. Buyers can pay slightly more, but get a "new-car buying experience." It includes a used vehicle in good condition that goes through a 100+-point inspection and reconditioning process before receiving a manufacturer's warranty, plus services like roadside assistance.

So if the "new" cars you buy are always used, there's no time like the present to consider picking up your next one.

Jim Bohen -St. Paul freelance writer

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