Cars under 5000 dollars
Now is a great time to buy a used car. Prices have really been dropping over the last couple years, and cars under 5000 dollars are now quite easy to find. Why is that? Well, there are a couple reasons. First, the astronomical jump in gas prices. When gas went from $2 to $4 a gallon in little over a year, many people decided they no longer needed two or three cars, and started taking the bus or the subway. And they started selling their cars. This brought a glut of used cars on the market, lowering prices. And even though gas has come back down, most people don’t believe it will stay there, and they’re sticking with their new habits.
Second, the credit crunch our economy is in has made the problem even worse. You’ve no doubt heard about the record number of foreclosures going on in America. A lesser known problem that’s almost as bad is the huge number of auto repossessions going on. Banks and lenders are taking back more cars than ever, and this is the other big reason it’s a whole lot easier to find cars under 5000 dollars these days.
How long with this situation last? No one can says. Even the so called expert economists disagree on whether this is just the beginning, or the middle or end of the recession. Prices could go lower, but it’s certainly not something you can count on. What we know for sure is that used car prices have come way down, and they seem to have stabilized for the moment. They may go down, but they could also very well go back up if the economy rights itself anytime soon. So it might be best to act now, because no one knows for sure how long you’ll be able to buy nice used cars under 5000 dollars.
