As Demand For Used Cars Increases, So Does The Price
MINNEAPOLIS (WCCO) -- Who doesn't love the look, and even the smell, of a new car?
The problem is that it usually comes at a high price.
Auto industry analysts say shoppers are increasingly turning to used cars and trucks when they're looking for a new ride.
"It is a very emotional purchase and it's a fun purchase," said Koppy Motors' Matt Lasiuta.
Lasiuta is the general manager of the used car lot in Forest Lake.
"Right now what you are seeing are people coming in and not wanting that $700 or $800 car payment a month, and wanting to be in the $200 to $300 dollar range," Lasiuta said. "And that's gonna put them in a nice used car."
Lasiuta says buying a used car is not like it used to be 10 or 20 years ago. Vehicles are now built to last longer and require fewer repairs.
"When you look at a used vehicle, even a 10-year-old vehicle, it it's got right about 100,000 miles on it, there's plenty of life left in it. And paying for it will be far less than paying for a new car," Lasiuta said.
A 2015 Ford Explorer at the lot with 85,000 miles has a price tag of $17,995. The new 2019 version is selling for about $32,000 after rebates.
"Even if you have 15,000 to 20,000 miles on a used car, there's still new car smell. You're still going to be under factory warranty for 99 percent of the cars you buy," Lasiuta said.
The prices of new cars have steadily climbed as automakers embraced new technology, but as the demand for used cars increases, look for those prices to go up, too.
Auto industry analysts says the demand for used cars is expected to remain high through the end of the year.