U.S. economy speeds up the used car market

How much per month are you willing to pay for your car? Rising gas prices and the worsening economy have many people reconsidering their automobile purchases. Think of it this way: if you had $400 budgeted per month for your car payment and gasoline, the more you spend to fill up, the less you have to pay for your car. These types of issues have been causing some car buyers who would normally purchase a new car to shop the used market instead. According to a recent survey by Wachovia, dealerships are selling more used cars than they had expected to, and significantly more than they sold last year.

Interestingly, it is the more expensive vehicles that used car shoppers seem to be considering, if web statistics are anything to go by. Perhaps consumers who are used to a certain level of luxury need to spend less but don't want to buy a cheap car.

Why should we care whether new cars or used cars are being purchased? The newer the vehicle, the more likely it is to meet the latest and most stringent emissions regulations required by the government. Put simply, new cars are often cleaner than older cars. So, as more miles are put on older cars, more pollution is emitted from their tailpipes.

[Source: Business Week]

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