How Consumer Sentiment Affect Used Car Prices?

And you thought that used car dealerships in Spartanburg, SC, decide the vehicle’s prices! Well, they do, but not according to their whims and fancies. They do not go about randomly marking their used cars with dollar figures and look to make hefty profits from every sale. Car pricing, like any other commodity, is dependent on the market. And the market swings based on consumer sentiments. What people are buying today or what people are preferring drives used car prices and those are what you pay. Here is how consumer sentiment work in the auto market.

At its core, it is all about supply and demand

Prices generally vary according to supply and demand. If supply is high and demand is low, then prices go down (think sunscreen during winters). And if supply is low and demand is high, prices are generally steep (gold and oil).The same principle is applicable to used cars. People prefer to buy a Toyota Camry. Then they hold on to it. Hence, the used car market sees a deficit of Camry-s, almost always, and the prices are naturally steep. The case is just the opposite with a less popular model like Genesis. As the demand is low and people willingly sell, they are cheaper as compared to Camry.

People go on a buying spree during holidays

Christmas, Thanksgiving, the 4th of July, or St. Patrick’s Day, consumers renovate their homes and add new items to their possessions. Thus, these are also times when people invest in used cars and most Spartanburg car dealerships see their car lots empty out a lot faster. Here again, the high demand brings in high prices and you typically find buying a used car an expensive affair. However, if you wait the period out, you will notice prices falling again.

Demand varies according to seasons

Used car dealerships with buy here pay here in South Carolina see high requests for hatchbacks and convertibles when the summers approach. That gradually translates into SUVs and pickups during autumn. You will obviously want airy cars during the scorching heat and prefer things covered when things are cold. Seasonal sentiment is another factor that affects used car prices. It varies at a consistent rate almost every year. Here again, you can time your purchase accordingly to benefit from swaying consumer sentiments and buy a used car cheap.