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Demand for less used cars is extremely high, which is not the norm. Most people go to the larger used vehicles that tend to be considered safer with lower car insurance. However, this is not the case for the current market.

However, it is not too surprising for experts. They compare this increase with small, used car sales to the summer of 2008 when gas prices increased. Sounds familiar to the summer of 2018 right?

The consequence of this change in the market is that car companies reduce their new, small car production. The low supply increases the demand for the small amount of new small vehicles that are available, which means that customers have to bid higher to get the vehicle.

That's exactly how the market moves, because car sales increased by 2.2 percent, a 13 year high. This also means that prices for small vehicles must increase, 3.9 per cent in fact. It is simply the way to play the market.

It has also become an influx of rental cars that flood the market, which as the other figures show, the rental cars become very easily absorbed. People seem to be looking for used cars for basic transportation. Another reason is that the hurricane and flood victims from the previous storm are using their insurance money and that is all they can afford.

There are also some other saving benefits of buying used cars, here are some.

Depreciation

When you buy new, your car can write off up to 50% within three years, which means that you lose a lot of value. When you buy used you do not have to worry about the cost of depreciation.

More value for money

Without having to worry about depreciation, it leaves more room in your budget for better equipment or even a better model than you would go for if you bought new ones.

Amount

Only 350 different models are offered in the new car market annually, but there are so many more options on the used market that are good news if you do not find your dream car on the new market. This means that you do not have to pay or pay more just to solve a vehicle you are not completely satisfied with.

Lower insurance

Your car insurance is based on the value of your car, which is why it is cheaper with a cheaper car. With new vehicles they are more expensive, so insurance is more expensive, besides then you have to handle depreciation over the next three years, no matter how good you keep your vehicle.

Cheaper registration fees

Depending on your location, older vehicles usually cost less to register, which is definitely a bonus.

If you are looking to buy a used car, especially a small car, it's time to do it!