Why are second hand cars so expensive in the US?

Question

I checked within 10 miles of me and found 42 cars on one sales site for under $750 and one for as little as $150.
UK cars have a strict annual test which covers Structure, brakes, steering, suspension, tyres, lights and electrics, exhaust and emissions and even the wiring for a trailer plug if fitted. 
Many were described as spares or repair to stop the dealer having to offer the 3 months warranty required on used cars in the UK.
Most had some test still left on them if not a full year and some did have 3 months Warranty as well.  
My neighbour just bought a 2003 Mitsubishi double cab pickup with hard top  in good condition and a years test for $1750 with only 40000 miles on it.  
I worked with someone who never paid more than $380 for cars and usually kept them 2 or 3 years then picked up another when it gave trouble. 
I have converted all prices to USD from UK pounds.

Don&#39;t Fear The Reaper · Accepted Answer

We had a period where the US government would pay a dealer $3000 for used cars of certain age and types. Now, the car had to be running, registered and licensed. The net effect was to completely dry up the used car market. Driving used car prices through the roof. After the $3000 incentive program expired, used car wholesale prices fell. While retail prices remained high. Some states have their own $3000 incentive based upon income. There is a back log for the program in Texas.

In short, trying to find a GOOD 10 to 15 year old car without paying through the snozzle is difficult. You near have to accept a wore out econo box. Which were not part of the $3000 incentive. Yet, were not all that common before. Now about all that one can find. Let alone professional repairs make it very expensive to maintain our cars. Most are unwilling to DYI and try to re-coup the cost of repairs upon selling.

We do have Craigslist and other web based private owner sites though. Which helps. If one doesn't mind a bit of repairs? Because our cheaper cars all need repairs and most will not pass the annual inspection. Which is why they are CHEAP. Many see what a repair cost is by a shop and give up. Or, are told only the original catalytic convertor ($300) will get a car past inspection. When the truth is a $90 will work fine. Or, just run cleaner and a tank of premium through will work.

Kim C · Answer

You didn't give us enough information to help you. Where you live in the U.S. has a greater impact on how much you will pay for a car. In the more rural areas, more people HAVE to drive cars to do just about anything. So cars are plentiful, they buy them more frequently because they need reliable transportation since public transportation is limited or in some cases non existant. Also car insurance is much cheaper, Those people are more likely to sell their used cars more frequently and at a cheaper price. Also, look for private sellers as opposed to going to a dealership, check the pennysavers, laundromats,  and anywhere a community bulletin board is posted.

Anonymous · Answer

You are an idiot.

Anonymous · Answer

We have to pay $4000 for a 15 year old car, never used to be that way,  should be only $500 for a car that old.  PURE GREED

Hugo90 · Answer

Prices you see advertised online are what dealers offer.  it's not the best place to buy a used car.

Anonymous · Answer

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Why are second hand cars so expensive in the US?

6 Answers