Take advantage of falling prices for used cars

Car prices have been declining over the past one or two years, despite the rising cost of steel and other raw materials. This is due to slow demand for new cars, forcing manufacturers to operate on very thin profit margins. Subsequently, prices of used cars have seen a sharp drop. In the United Kingdom, a survey conducted in June 2008 revealed that the price of cars that were between 1 and 3 years of age has decreased by approximately 12% over a period of one year. The survey also showed that the prices of such used vehicles could plunge by another 25% over the full year 2008.

At an auction in Britain, a 2-year-old Rolls Royce Phantom in perfect condition for the auction of 135,000 British pounds, against its original price of 265,000 British pounds. The same fate awaiting many used cars such as a Range Rover, a Bentley Continental and other models of Audi and BMW. The sharp rise in gas prices and oil also helped people flee away from gas guzzlers. In November 2008, sales of new cars in the luxury class fell 39% from a year ago sales. Consequently, the prices of cars were also submerged in a manner corresponding with people who offer much less for them.