While new cars are being produced and bought in Japan, a lot of individuals still buy Japanese used cars. Even though most of the news are always about new cars, it is safe to deduce that for every 1 new Japanese car sold, at least 2 Japanese used cars must have been sold. And this is going to continue to be so due to many reasons.
RISING PRICES OF NEW CARS
The prices of new cars continue to rise as new technologies and quality are added to the cars. Statistics show that in the past 1 year, the price of new cars have risen by about 1.9 per cent. This implies that the prices of new cars have increased with an average of about six hundred dollars. While the prices of used cars are also increasing, a buyer still has a wide range of options which are negotiable unlike new cars whose prices are not negotiable. It is possible to get a buyer that would want to sell a Japanese used car whose real second hand value is $1,000 for $600. It would however be almost impossible to see a car dealer who would be willing to sell a car whose market value is $10,000 for $6,000.
From economics point of view, the pricing of a particular product is dependent on the forces of demand and supply. Due to the fact that a lot of individuals opt for Japanese used cars, the only factor that would keep the prices constant is if the number of the Japanese used cars also increases. Fortunately, this is exactly the case. A lot of Japanese used cars surface in the market regularly for sale. This would thus continue to keep the price of the cars steady or might even lead to a slight reduction in the pricing should more Japanese used cars surface in the market.
A lot of individuals who buy cars are family men, who have a lot of contending needs. In most cases, they end up buying cars more as a necessity than luxury. This makes them to shop for the best value available for the cheapest price. They therefore, always opt for Japanese used cars, as they are not much after modern technologies but just looking for a car that would conveniently take them from point A to point B. The best option for them is therefore buying Japanese used cars instead of attempting to buy new cars at the expense of other very important contending needs.
LIFE SPAN OF CARS
With improvement in quality and competition among car makers, a lot of car manufacturers are improving the quality and durability of their vehicles. This implies that cars are able to last longer. Those that have the means to buy new cars comfortably would always want to dispose of their older models in order to get newer models. So other buyers who are after functionality would buy the older models are cheaper prices they can afford. It is worthy of note that presently, the number of people that can afford brand new vehicles are much less than the number of people who cannot afford brand new vehicles.