Experts at Hudiburg Nissan Explain How Consumers Are Affected By Current Drops in Used Car Prices

OKLAHOMA CITY - Oct. 23, 2014 - PRLog -- The past decade has been particularly harsh on the U.S. automotive industry, but experts have begun to inform consumers that the influx of used cars into the market could have serious consequences for the entire industry. On October 1, Time Money noted that used car prices were "plummeting," but more recently, an October 15 article via Business Insider references a Morgan Stanley analyst who predicts that used car prices will begin to rise very quickly after 2014.

Experts believe that the current drop in used car prices is largely due to an increased number of consumers leasing new cars two to three years ago; now that those leases are up, many dealerships are being flooded with used cars.

Tony Jones, the Used Car Manager at Hudiburg Nissan, states that prices are driven by both volume and competition.

"To a dealership," Jones states, "moving the volume of units is important. Pricing always has to be competitive for dealers to stay in business." And with the sudden influx of used cars on so many lots, dealerships are trying to push used car sales as much as possible.

The drop in used car prices is beneficial for consumers -- for now, at least. Jones notes that used cars tend to fit into the average consumer's budget, that the taxes and insurance rates for used cars tend to be lower, and that the recent influx of used cars offers consumers a wide variety of choices.

Nevertheless, as Business Insider has reported, it's possible that used cars could become a poor investment for consumers in the future, and Jones states that "longevity and demand of vehicles determines the long term value [of used cars]."

As consumers opt for more used cars in the coming months, manufacturers will produce fewer new cars, and a few years down the road, the exact opposite scenario will take place: fewer people will be returning their leases, causing fewer used cars to circulate the market, leading to much higher used car prices overall.

For now, Jones is confident that local dealerships like Hudiburg Nissan will be able to accommodate these market shifts; he notes that the consumer base for Hudiburg Nissan is "pretty well balanced" between consumers who want new cars and consumers who want new cars, and this balance allows the dealership to keep its prices fairly steady.

About Hudiburg Nissan

Hudiburg Nissan, located in Oklahoma City, has a large selection of new and used Nissans on their lots. Hudiburg Nissan is committed to providing top customer service, whether customers are buying a car, or just getting an oil change. To learn more about their current specials, financing or services, visit hudiburgnissan.com