December 28, 2007

More on car prices

Car prices can be regional. In some areas of the country 4 wheel drive cars are more popular than others, so they command a higher price than in areas where you really don't need the 4X4 to get around in the winter. Convertibles are more popular in the Southern parts of the country, because people don't particularly want a convertible where it snows. Older cars are cheaper in the rust belt areas because of snow, salt and rust problems. A car can be rusted out in 3 or 4 years, where in the sun belt the same car could be in great condition 25 years form now.

I know of some people who have made a good living buying unpopular cars in one area of the country and moving them to an area where they were popular and selling them at a profit.
Since the introduction of the internet the price differences between different areas have tended to level out. I can find out what a given car is selling for in various parts of the country in just a few clicks of a computer mouse. So I am going to try to buy in line with the lowest selling prices I see in order to make a profit.

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