The Hidden Costs Of Buying A Car

The Best Used Cars For The Money

] Steinert says many consumers spend more than they need to by not looking for cars farther from their home say, 100 miles away. "Sure, it may take 90 minutes to get to a dealership farther away, but if you can save $2,000 on a car, new or used, it's probably worth it," Steinert says. "We've done a lot of analysis that you can get substantial savings by going beyond your typical ZIP code." He also says cars are often cheaper in the city versus the countryside because more dealerships are competing with each other to get your business. Of course, you could drive yourself insane debating the hidden costs that may or may not come with your new or new-to-you car. So eventually stop worrying, and buy a car already. <br>For the original version including any supplementary images or video, visit http://money.usnews.com/money/personal-finance/articles/2014/02/13/the-hidden-costs-of-buying-a-car

This situation can be blamed largely on the economists old friends, the forces of supply and demand. The industry is currently suffering from a diminished stock of used models on dealers lots, just as pent-up demand is bringing buyers back into the market. This lack of inventory is widely attributed to an extended period of slow new-car sales, which resulted in fewer trade-ins, combined with a rollback in new-car leasing between 2008-2010 that would have otherwise yielded two- and three-year-old used models coming off lease. Whats more, over 690,000 used cars albeit older and less-desirable models were taken out of the market by the so-called cash for clunkers program in 2009. Analysts predict used car prices will finally begin tapering off, perhaps as early as years end, with healthier new-car sales including those from Japanese automakers recovering from production disruptions because of the earthquake and tsunami in March helping to refill the supply chain via trade-ins. Used car prices at the end of the year will still be higher than last year, but not at the levels during the peak in May and June when prices jumped 25-30 percent higher, says Jonathan Banks, a senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide But that doesnt mean there still arent some advantageous deals to be found in the used-car market. <br>For the original version including any supplementary images or video, visit http://www.forbes.com/sites/jimgorzelany/2011/10/25/the-best-used-cars-for-the-money/

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