Tag Archives: new car

Why are Used Car Prices so High?

If you are in the market for a good used car, you are probably experiencing something that is usually only associated with new cars, namely Sticker Shock. So, what is causing the price of used cars to be so high? There are many reasons for it, but they all basically boil down to the law of supply and demand. When the supply is low or the demand is high, the price will go up. Currently, the supply for used cars is very and the demand is very high, so both are happening. The demand for used cars in up because many people who would normally buy a new car are now in the market for a used car. Concerns about our economy are steering people away from large ticket items, like a new car.

The supply of used cars in the market has dwindled for many reasons. One of those reasons is the government’s recent Cash for Clunkers program. This was the program that was supposed to stimulate new car sales and thus our economy. Under that program, people were given vouchers of up to $4500 to use towards the purchase of a new more energy efficient car when they traded in their used less fuel efficient car that ran. About 700,000 cars were traded in under the Cash for Clunkers program. Since those vehicles were ones that ran, they would normally have gone straight into the used car market. Instead, under the rules of the program all of the Cash for Clunkers cars were destroyed. The result was a 700,000 drain on the used car market.

Another reason for the shrinkage in the number of available used cars is that many motorists are choosing to keep their used cars rather than trading them in for a new or newer one.  In addition, there is an extreme lack of cars entering the market from rental car agencies and companies that provide fleet cars to their employees. Those institutions normally trade their vehicles in for new ones every year or two. At this time, those companies are holding onto those vehicles longer due to our lackluster economy.

When the economy begins to sufficiently improve the sale of new cars will finally increase. When that happens, the supply of used cars will increase correspondently and the price of those used cars will start to come down. Until that time comes, the price of used cars will remain high.

Can I Keep My New Car from Rusting?

Car rust is caused when the metal is exposed to moisture over time. Keeping your new car waxed will help protect it from rusting since the wax forms a barrier between the metal and the moisture.

It is also important to keep moisture off your car. So, after you wash it, make sure the car and the undercarriage are completely dry before you put it in a garage. The undercarriage will dry simply by leaving the car outside for awhile.

You should also put mud flaps on your car to keep mud and other debris from collecting in the wheel wells. They will also protect your car from the dings caused by stones kicking up. Those dings will expose the metal to the elements and create an excellent place for rust to begin. If you do have any dings or small scratches on your car, you should address them before any rust begins. Some polishing compound and a little touch up paint will usually take care of them.

If you live in an area where it snows, you know how fast road salt will eat through the wax, paint and metal on your new car and accelerate the formation of rust. That is why it is very important to give your car a good coat of wax before the snow comes. During the winter, you only need to wash your car when the air temperature is above. Road salt is only active at temperatures above freezing, so you do not need to wash your car when it is very cold out. Besides, if you do wash your car when it is very cold outside, your door locks and power windows are likely to freeze. Of course, if you park your car in a garage, you will want to gauge when to wash your car by the temperature in the garage. When you do finally wash your car, you should pay special attention to cleaning the wheel hubs, wheel wells and undercarriage as these are the places where the road salt tends to stick.

You should also consider putting rubber mats on the floor of your new car during the winter months. These rubber mats will keep the salty water from melting snow from seeping into the carpets and rusting your floor boards.

Keeping your new car from rusting will take a little time. That time spend will be worth it by helping to maintain the appearance and value of your investment.