An Intern's Used-Car Gold

The recent trend of folks choosing efficiency over size in the new-car market isn’t without benefit to a few people. What am I (a humble intern) talking about? My sweet, slightly used 2006 Hyundai Accent with an automatic transmission and air conditioning, of course. If you haven’t figured out my plan yet, I’m trying to sell the thing and am using KickingTires as a selfish plug to do so. 

Here’s my angle: Automakers are having trouble producing enough hybrids for people looking to save on gas, so those out-of-luck people should come groveling to me for this Korean jewel. The new Accents’ sales were up 70% in June, so I figure it should be a slam dunk making money on my 2006.

Aside from my assumptions, though, has the current crisis really turned small cars into gold and my baby Accent into an investment? Kelley Blue Book executive editorial director Jack R. Nerad says think again.

“What we have seen is that used cars are continuing to depreciate,” he said, though he did say that large SUVs and cars are deprecating at a greater rate. Smaller used cars are still losing their value, just at a lesser rate than gas-guzzlers. 

Though it’s harder to track across-the-board sales of used cars, fewer people are buying them, matching the trend of falling new-car sales.

“The general thinking is that if less people are buying new then they must be buying used, but we found that isn’t the case,” Nerad said. Instead, consumers who could least afford a car but were planning to buy used have instead dropped out of the market completely. 

As for my used Accent, it has one of the worst resale-value ratings in the industry. The only small vehicles on the list of cars with the best resale values are the Honda Civic and Mini Cooper S. Bottom line: It’s still best not to think of your car as an investment.

Comments

[Frogger81]

The last source I would trust is Kelly Blue Book. If you want real market values scan Cars.com and compare or check out Edmunds. I've always found dealers want to offer KBB price as it posts the lowest price when compared to the other services (NADA, Black Book, Edmunds, etc). Only a fool would leverage KBB for their market pricing.

[Dave T.]

Frogger,
We weren't looking at a sales price just the rate of depreciation. They actually keep very accurate tabs on industry trends in the used car market. But yes, real life prices vary wildly, especially in different regions.

[ziggy]

It's amazing how sellers of small economic cars try to take you. I saw today on carmax.com that they have used Honda Fit's priced higher than the sticker price of new ones.

[Maxwell]

How about keeping it? It gets you where you need to go.

Here's a little trick I learned from my father about buying cars. First, get the cheapest car you can get that will serve your needs (NOT WANTS).

After it's paid off, KEEP IT and keep making the car payments. Except you make the payments into a savings account rather to a bank or car company.

Keep the car as long as you can and run the car into the ground. By that time, you'll have nice chunk of change for a new car. It takes some self control, but it works. I have not had to borrow money for a car since 1979.

[J]

I agree. Why not just keep the car? It's not horrible or anything.

[Infosaur]

Look at it another way, if gas prices DO come down you're missing out on a buying oppertunity to UPGRADE.

Sell that econobox for the best price you can get then get a nice midsize sedan, well appointed for 0% financing (Saturn Aura)

Someone also mentioned that while Honda Civics are flying off the lot, Si's and Mugens are going for want. Make a deal!

[Dave T]

He was being sarcastic about selling the car as in there must be a profit to be made etc.

[Roo]

The only exception to used small cars appreciating in value are old economy cars from the 80's and 90's. My '87 Justy almost doubled in value the past year according to KBB! A newer car like the 2006 Accent will continue depreciating and the others are tright, keep it and take care of it. There's nothing better than a paid-off car.

[Extracebu]

Nice Car. Is it for bidding?

[Liger]

It does seem like older used economy cars are appreciating a lot. Good luck finding a used manual transmission Mazda protege or ford focus newer than a 2000 year model with low miles for less than 9 grand or so. I've looked around, there are not many of them available.

[Colin B]

Yeah it was meant to be sort of sarcastic. However, I have my eye on a nice new Charger SE. Chrysler is practically giving them away!

Though, I'm not irrational (for the most part), I don't need a new car or a gas guzzler for that matter.

[markt]

I'm with maxwell, i have had 4 cars in my life and have never had a car loan. but if you want real market value you have to subscribe to Galves. Every dealer and auction in the country use that book to buy used cars.

[Used Car Marketing]

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