Are Used Car Prices Going Down in 2016?

What Affects Used Car Prices?

If you drive a car, maintain a car, or ever think you may need to replace your current car, it is important to continuously remain up-to-date on how the marketplace is changing in relation to your car's value.

Back in May of 2011, USA Today published an article regarding pricing pressures in the used car market. The article describes the dramatic increase in used car prices due to a shortage in Japanese-sourced parts combined with a spike in demand for "smaller, fuel-thrifty cars." The solution among auto dealers was to encourage buyers to trade in their used vehicles for new ones.

Our takeaway from the article was that the car you are driving is holding its value well, and in 2011 more than ever. It paid to keep your car's maintenance and repairs in good order, allowing the opportunity for a trade-in.

Will Used Car Prices Drop in 2016?

Things have changed significantly in the past 5 years, resulting in a decrease in the value of used cars for the first time since 2008. In fact, according to the National Automobile Dealers Association (NADA) Used Car Guide, prices are expected to fall by 5 to 6 percent this year.

This trend has been explained in an article by Market Watch in March of this year. The major decrease of used vehicle prices has occurred for a number of reasons, including a post-recession economy and a growing popularity of leasing that has resulted in an increased supply of used vehicles, also known as off-lease vehicles.

Should You Buy a Used Car This Year?

If you are looking to purchase a used car, now is the time to do so. Considering that the most common leasing period is 3 years, this latest market trend is great news for buyers at least through 2018! Selling your car, on the other hand, may be worth waiting until the used car market sees new fluctuations.

The bottom line is, there are many different factors that affect used car prices, which is why we recommend paying close attention to the marketplace prior to making any sale or purchase decisions.

To learn more, please feel free to contact Keith Lewis and team at Motorplex today!

Choosing An Auto Repair Shop or Truck Service Shop:

It seems like a simple task for some, but can be quite daunting for others. Being a professional automotive technician for 25 years, and 4 time re-certified ASE Master Certified Technician, I get asked frequently “where should I take my car or truck?” With bias, I will always recommend one of our shops in Maple Valley, WA or Auburn, WA.  

Nonetheless, if you are not within this area—here are my recommendations. First off, please understand that technicians are humans, and we work on machinery and electronics—all with a mind of their own.  What I mean by this is that it is an imperfect process, and we will not always meet all of your expectations as a service provider.

Choose a repair shop by some or all of the following methods:

Businesses and Customers 

Alike Rely on Reviews 

1. Review their website.
2. Read through various reviews. Understanding that all reviews will not be positive—and if they are--it may be suspect.  Don’t just look at Google reviews, but try looking up DemandForce, Sure Critic and others.  Some businesses, like us, subscribe to services that scrape our database and either call or email every customer after a completed transaction.  We all know that the most satisfied are the least represented online.
   
3. Make a phone call with questions. With current technology stripping away some person to person communication, having a personal discussion is valuable in learning competence and trustworthiness.
4. Send an email with questions.  If a service provider is willing to take some time to communicate with you to answer questions, it goes a long ways in developing a worthwhile relationship.
   
   
   

   

   A Satisfied Customer 

5. Give them a chance.  Don’t always make up your mind with 1 transaction.  I recommend 5 transactions.  3 of the 5 will likely be just great, 1 of them might be little hard to understand or frustrating, and 1 might have a problem such as a part delay, warranty issue, or mistake.  Making your decision across all 5 transactions will help you make a fair decision, because they all don’t come in the order of the first 3 being just great.
6. Finally, having a relationship with a repair facility should involve some loyalty and patience.  You will save more money by trusting that the right repairs are performed at the right time by the right person—not by saving 10% on one transaction. Furthermore, the real savings in having a relationship with a professional is the reliability and overall cost of ownership being less with a longer lasting vehicle.

One of Our Pro-Tow Vehicles

Good luck,

Keith Lewis
keith@motorplex.com
www.motorplex.com
www.pro-tow.com
Auto & Heavy Truck Repair
Maple Valley, WA  & Auburn, WA
24 hr Towing & Recovery
24 hr Mobile OnSite Truck Repair
425.310.1100
253.245.5454

Dynamic Pricing

National Public Radio did a nice piece recently about how airlines and other industries are strategically and dynamically adjusting their pricing constantly.   What I have found recently is that the world of auto repair combined with recessionary pressures is creating challenges for the consumer to really understand what the cost of repair will be.  Parts pricing from manufacturers and suppliers alike are quite dynamic, and quality disparate. For some shops, labor pricing can by dynamic as well.
Please remember that there are moving parts in the total out-the-door cost to auto repair, and there is no substitute for trust and relationship when it comes to paying for competent labor.  1.  Diagnosis is a requirement to be accurate and leaving this element out leads to cost coverage in other areas or incorrect repairs in the first place.  2.  A competent inspection in attempt to identify other areas of service need can prevent surprises during the course of repair.  3.  A thorough explanation of suggested service that can prevent more expensive repairs or breakdowns later. 4.  Taxes, fluids, shop supplies, and hazardous waste fees are also part of the common repair and are not always quoted by all shops over the phone. 

Finally, make sure that when you are comparing prices that all the above elements are taken in to consideration so you are not mistakenly thinking that a lower price actually won't end up as a higher price.

Respectfully,

Keith Lewis

Certified Technician & Heavy Recovery Specialist
ASE Master, L1, AES, AAM, TRAW HD, TRAA Level 1,2 & 3
keith@motorplex.com
www.motorplex.com
www.pro-tow.com
MOTORPLEX: Auto & Heavy Truck Repair, 24 Hr. OnSite Service
PRO-TOW: 24 Hr. Towing & Recovery, Nationwide Transport, & 24 Hr. Load Services
425.310.1100 Office
425.310.1001 Fax
253.245.5454 24 hr. Dispatch
800.439.8196 Toll Free Dispatch
23933 SE 264th ST, Maple Valley, WA  98038  Lat/Long: N47.36516 & W122.02180
420 H ST NW, Auburn, WA  98001  Lat/Long: N47.31204 & W122.23850

Automotive Battery: They are not all created equally

There are simple things in your car that can cause complicated repairs.  The battery is one of them.   The first thing to remember is that not replacing the battery until it won’t start the car can be a mistake.  The second thing is that replacing it with an inexpensive battery can cost you considerably more than you saved. 

In summary, batteries can start to seep battery acid around the terminals or around the top of the battery.  This battery acid is then wicked up the battery cables.  The battery acid corrodes and will increase electrical resistance in the cables that come in contact with the acid.  With late model vehicles, even the smallest increase in resistance can create havoc in your computer systems and the way your vehicle runs.  Once this havoc surfaces, you will likely not only need to replace the battery but the cables or wiring harness that has suffered damage.

Stop by for a free battery check at either of locations: Motorplex Maple Valley; 23933 SE 264^th St, Maple Valley, WA  425.310.1100; or Motorplex Auburn; 420 H ST NW, Auburn, WA  98001 253.245.5400.  www.motorplex.com .

Motorplex: Service History Email Thank You

I understand that taking care of your car is a responsibility, and it is not often you wake up and want to come visit Motorplex.  Nonetheless, after 18 years, servicing your car or truck is still fun.  I thank you for that opportunity.  Don’t be afraid to just stop in and say high or just ask a question—your car does not have to be broke for that. 

Cars are definitely changing, but one thing seems to hold the same, and that is the better maintained cars in the first 100,000 miles cost a whole lot less to keep on the road in the second 200,000. 

At Motorplex we have all been working hard at each of your visits to review service histories, analyze your owner’s manual recommendations, and set forth a plan for services upcoming.  This should be visible on each of your invoice, and will also show up below in this email. 

We take pride in keeping your cost of ownership low, and the reliability up.  There is no way to completely prevent breakdowns and challenging times, but it sure is a lot easier when you have our team always willing to help you 24/7 nationwide. 

Thank you for being our customer!  http://www.motorplex.com/ 425.310.1100

What make or model of vehicle should I buy?

·         This is mainly a personal decision that I can better assist after you have narrowed down the choices to a few similar competitive models.  Then, I can provide you my personal opinion based on technical data available and experiences with the repair and maintenance in our shop.  It is worth noting, however, that manufacturers seem to have the most challenges when introducing new models or new engine/transmission combinations not previously in production.  www.motorplex.com  www.pro-tow.com  425.310.1100 service 253.245.5454 towing

 

How long should my car last or how long should I keep my car?

·         In 1987, when I began in this trade, 100,000 miles was a milestone, that was often targeted as a turn point for vehicles.  Many manufacturers only produce maintenance intervals up to this mileage.  However, today 150,000 or 200,000 miles is a regular occurrence in our facility, with many of our customers (and myself included)that can satisfactorily testify in excess of 250,000.  Regardless of the vehicle, it is statistically unlikely that you will be satisfied with your vehicle at 150,000 without performing maintenance during the vehicle’s life.  http://www.motorplex.com/   http://www.pro-tow.com/   425.310.1100 service 253.245.5454 towing