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Why can’t I find a vehicle for $1000 anymore????
We have had quite a few people calling and coming by lately for $1000 vehicles. Unfortunately, we just can’t find these vehicles anymore…. but why?
During the recession in 2008-2009, new car sales dramatically decreased. Although this is 9 years ago, it has affected the number of used vehicles today. Late Model vehicles are harder to find and especially at a decent price. Meanwhile, people are also holding onto their vehicles longer. When people purchase a vehicle, they take care of it, and are on average, keeping their vehicle for about 8 years.
Prices at the auctions have increased as well. We ran an article last year about the hurricanes in the South causing prices of Used vehicles to increase. Most viable used vehicles are being shipped to the Southern US to replace many of the flood damaged vehicles. This demonstrates the law of Supply and Demand. We have low supply of vehicles in Illinois, which leads to higher demand, which can command higher prices. Unfortunately, for the car dealer to make money, they must price the vehicle at a price higher than what they paid at the auction. They must recondition the vehicle, and this takes money from their profit. Hopefully not losing money in the end. It’s a gamble.
Programs that are paid for by the state are also causing a shortage of inexpensive vehicles. Programs such as cash for clunkers, donating vehicles to charities, or people in California being paid to retire older vehicles. Cars we might have sold for $3,000 to $3,500 a couple years are now $5,000 to $5,500.
Now is it possible to find the $1000 vehicle on Craigslist? The answer is yes! But you must be an informed buyer. You most likely will be getting a clunker! There will most likely be body damage, no AC, interior stains, etc. If you just need a vehicle to get you from point A to point B, and absolutely do not care what it looks like, it is possible. Do your due diligence though, make sure that it runs! Some vehicles to stay away from…No license plates-this means that it is not being driven, vehicles with no pictures…it is actually that bad, it broke the camera! Vehicles with major issues. You will most likely have some repairs, but make sure that it is nothing major! And make sure that they have a clean title! I looked up $1000 cars on craigslist right now, and found many cars that looked ok, but after reading the descriptions-most were not running. There were some vehicles that maybe didn’t look the greatest but were running. Just always remember, when buying from a private party, there is no guarantee for your purchase.
39 Stonehill Rd Ste E
Oswego, IL 60543