Used-Car Prices Cool Down

Used-dealer

According to industry experts, prices for used cars are still pretty high, but you can expect them to fall during the next few months thanks to an uptick in supply and a decrease in demand.

A consumer shift toward used-car purchases during the recession created a shortage of late-model, low-mileage used vehicles, which led to higher prices. Those vehicles are still commanding record prices on used-car lots, according to a New York Times report, but the National Automotive Dealers Association says that the price of used cars around 1 to 3 years old is expected to fall 1.5 percent by year's end, compared to last year's prices.

Cars.com tracks the site's used-car prices, and we're also charting a small decline after months of increases. Last month, the average cost of a late-model used car dipped slightly to $22,177 from August's $22,193 price.

One big reason for the decline is an increase in supply thanks to a plethora of vehicles coming off leases. Leasing was up in 2011 and those vehicles are just now coming back into dealer lots for resale. Click here for the full story.

Related
After Running Hot, Market for Used Cars Is Cooling (New York Times)
Luxury-Car Prices Tumble Again in September
Checklist for Buying a Used Car

By Jennifer Geiger | October 21, 2013 | Comments (4)

Comments 

That's not a very significant drop in price. $16? I guess it is something, though.

carma

There seems to be a bubble in the pricing of both new and used cars and trucks. New silverado crew cabs with some options cost $45K - outrageous. Seven year old compact chevy colorados with 120,000 miles are priced at $12k at dealers. BMW changes the name of its three series to the four series so they can base price it in the $40s, for a car the size of a corolla. It will be interesting to see when people stop buying and the bottom falls out.

Greg

You need to follow Black Books weekly market report. They have been showing a downward trend for the past 6 weeks or more in used vehicle values. Black Book actually gathers data from dealer auctions daily and not 2 month old sales data and projections of the future trends.

This article helped me in knowing the trend of used car industry.

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