Why it’s time to buy a used car

There are a couple factors contributing to the perfect storm that’s benefiting used car buyers right now.

First, automakers overextended themselves in 2014 with subsidized leases. All those cars are coming off lease now and are back on the dealer lots. The supply is extreme.

Second, buyer tastes have changed. In 2014, the marketplace was much more heavily tilted toward passenger cars than it is today. Nowadays, most people want to drive some kind of light truck — an SUV, a truck, a van or a crossover. So passenger cars are sitting on dealer lots now.

And in fact, used cars are depreciating at such a fast pace that there’s almost never been a better time to buy a used vehicle.

New data shows that the average used car lost 17 percent of its value year-over-year during the last 12 months, according to research from Black Book.

The average value of a used car is now $15,300, down from $18,400 a year ago. That is nearly double the rate we had just three years ago.

That means the best deals right now are on three-yearold passenger cars. In particular, three-year-old luxury cars are a steal of deal. Luxury cars have always been more heavily tilted to the sedan category than they have to the light truck category.

But the ultimate deal of all? A three-year-old hybrid or a three-year-old Nissan Leaf. Leafs are selling for practically nothing right now!

That’s because Nissan very heavily leased the Leaf and they’ve fallen out of favor because of low gas prices. According to Clark, people are now buying Leafs that have 25,000 to 30,000 miles on them for as little as $6,000. It costs next to nothing to run a Leaf, so consider if this could work for your commute cycle.