Thursday, September 17, 2009

Teach me about the used car market

Apparently the quality of used vehicles is improving.

Interesting! Useful, if you're in the market for a used car!

But why does the used car market exist?

I totally get why someone would buy a used car, but why do so many people want to sell their now apparently perfectly good cars? I can see how some people might want to upgrade and have the very latest thing, but I can't imagine why so many people would do it that a whole used car market would exist, and buying a used car would be commonplace rather than exceptional.

I have no frame of reference here. I've never bought or shopped for a car, my parents have always bought their cars new and used them until they died (the cars, not the parents) and no one I know has ever sold their car. So help me out. What am I missing?

5 comments:

laura k said...

I'm trying to figure out what doesn't make sense to you about it.

You have a car. It works. You also have the resources for a newer, better car. So you sell the old one, and put the money towards buying a new one.

I've sold or given away furniture, TV sets, computers, clothes - all in working order, but I was upgrading or changing or they didn't work for me anymore, but they might meet someone else's needs. Same idea.

No?

Dharma Seeker said...

The popularity of leasing might explain some of it. Consumer leases a car, decides not to buy it when then lease expires and the dealership now has a "used" car to sell.

impudent strumpet said...

What doesn't make sense is that enough people are upgrading with enough regularity that there are always a good variety of used cars available. I can see why a person might end up selling a perfectly good car, but find it odd that these circumstances are occurring so frequently.

But the lease thing might explain it, I forgot about that.

laura k said...

I don't know... the used car market was huge before leases became a big thing.

In the US at least, it's not common to drive one car for the life of that car - from dealership until it dies. People are always buying and selling used cars, in all different states of age and quality.

impudent strumpet said...

Ugh, that just doesn't sound any fun at all.