There seems to be a merging in the middle for many car buyers, and it seems to be driven by one part economy, one part gas prices, and 100% affordability. People shopping new cars for sale are downsizing what they drive. Full size SUV drivers are turning to small SUV options; large car owners are shopping smaller cheap cars.
On the other side of the coin, you have shoppers who would be using car search engines to find used cheap cars. But with the shrinkage of inventory for used cars as of late, you have more and more second hand car shoppers kicking the tires on smaller affordable new cars.
Take the recent rise in sales of small SUV's for example. Many shoppers who may have been interested in a Yukon or Explorer are now shopping for cars under $25000. So instead of that Denali you maybe are shopping for a Grand Cherokee, or instead of that Tahoe your browsing car search engines for an Equinox or Escape.
Many are combining that lower price tag on the smaller ride with rebates and incentives on many new cars that are being offered. The 0 financing on new cars is especially popular with many automakers, as well as many first time new car shoppers.
So appealing to many former used cars shoppers, that it almost becomes difficult to justify not buying new. When the sticker price on new cars for sale is so close to used car prices, and then you throw on top of that the rebates and incentives of new cars, and additional savings such as factory warranty, it can really make a used car a deal breaker long term.
Former large vehicle owners trading down for cars under 25000, former used car buyers trading up for 0 financing on new cars, it seems everybody is moving towards a certain middle ground. Which direction are you moving towards?