Used-Car Prices Fall to Lowest Level This Year

After rising slightly in April, late-model used-car prices dipped again in May. The average price for 2010 to 2012 used cars on Cars.com stood at $22,508 on May 1, a $159 decrease from April 1 and the lowest average price so far this year.

Of the 10 models with the biggest price drops in May, half of them were from luxury brands. Leading the list with the biggest price decline was the Lexus ES 350 sedan. After experiencing a run-up last month, its average asking price fell $2,682 to $30,735, an 8% decline. Lexus alone had three of the top 10 models, with the LS 460 full-size sedan and HS 250h hybrid both experiencing 3% price drops.

The top used-car price gains in May were more closely grouped than in prior months, ranging from 2% to 4%. Most of the top 10 advanced 2%, but two pickup trucks — the full-size Ram 2500 and compact GMC Canyon — saw 4% and 3% increases, respectively.

The chart below details the top 10 used cars from the 2010 to 2012 model years with the biggest price drops — as well as the 10 with the biggest increases. To be eligible for the list, a model had to have 500 cars in Cars.com's national inventory.

Cadillac Extends Certified Pre-Owned Coverage

Cadillac announced new coverage limits Monday on its certified pre-owned cars, with a full bumper-to-bumper warranty extending to six years or 70,000 miles from when the car was new. That's two years and 20,000 miles past the brand’s previous CPO policy, which extended just four years or 50,000 miles. The program also includes 24-hour roadside assistance and three months' OnStar and Satellite radio service.

Shoppers can also purchase Cadillac's Premium Care Maintenance, which covers oil changes, tire rotations and other routine maintenance, for $399, Cadillac spokesman David Caldwell confirmed. Premium Care Maintenance is standard on new Cadillacs but was previously unavailable on CPO cars.

The brand’s program falls short of BMW's six-year, 100,000-mile CPO bumper-to-bumper policy; both brands employ simple caps that apply no matter when you buy the car. Lexus, Mercedes-Benz and Audi also have 100,000-mile warranty limits, but their yearly limits vary depending on when you buy the car.

Used BMW X5, Subaru Impreza Prices Fall in March

Late-model used-car prices saw a very slight decline in March, with the average asking price in Cars.com vehicle listings down $31 to $22,619. Prices for 2010 to 2012 used cars are down just $43 from the beginning of the year, or less than 1%.

Among the top 10 cars with the biggest price swings, March was a month of price corrections. After experiencing the biggest price gains in February, the BMW X5 and Subaru Impreza had the largest price declines in March. X5 prices were down 9% to $44,901 while Impreza prices fell 6% to $21,918. The decreases erased all of the prior month's gains for these models — and then some. Perhaps these all-wheel-drive vehicles were priced higher for winter.

10 Cars for $10K: The Best Used Cars for $10,000

At Cars.com, we focus on new cars, but when it comes to overall car sales, used cars own the field. CNW Marketing Research reports shoppers bought more than 40 million of them in 2012, the highest total since 2007. For every new car sold, nearly three used cars changed hands.

Shoppers are still taking the used route despite near-record used-car prices, which soared so high that we suspended our $10,000 used-car recommendations — once a regular Cars.com feature — for two years. Blame the recession, which slashed new-car sales and the resulting supply of late-model used cars that are typically traded in for them.

Used-car prices are coming back to earth, according to Manheim's Used Vehicle Value Index, but that's not to say used-car prices are low again. They have ebbed enough to give $10K cars another go.

Used BMW X5 Prices Surge in February

Late-model used-car prices held steady in February, with the average asking price in Cars.com vehicle listings falling just $12 from the month before to $22,650.

The top 10 models with the biggest price drops saw considerably steeper declines over the same timeframe of Jan. 1 to Feb. 1. The Chevrolet Express 3500 registered the biggest fall as the heavy-duty full-size van saw its average asking price slip 12% to $21,679, a decline of $2,847. Another Chevrolet, the Corvette sports car, saw the biggest pure-dollar decrease with a $3,091 price drop, but a higher overall price means the decline was just 5%.

Meanwhile, prices for the BMW X5 luxury SUV surged 8% ($3,662) in February to $49,512. It was followed by the Subaru Impreza (up 6%) and Jeep Grand Cherokee (up 4%).

The charts below detail the top 10 used cars from the 2010 to 2012 model years with the biggest price drops — as well as the 10 with the biggest increases. To be eligible for the list, a model had to have 500 cars in Cars.com's national inventory.

Mitsubishi Galant Prices Tumble in January

Late-model used-car prices dipped slightly in January 2013, dropping about one-half of a percentage point ($101) from December 2012 to $22,662. However, a number of models saw significantly steeper declines. Leading the way was the Mitsubishi Galant.

The now-discontinued family sedan saw its average asking price drop 12% to $13,993, a decrease of nearly $2,000. Other models that have recently met the chopping block — the Mercury Milan and Mazda CX-7 — also saw some of the largest price drops of the month with declines of 4%.

Another Mitsubishi model, the Lancer compact car, saw the biggest price increase of the month with a 5% ($841) jump to $17,672. The Chevrolet Corvette saw the second-largest increase with a 4% rise but the largest dollar jump of $2,528 to $59,017.

The chart below details the top 10 used cars from the 2010 to 2012 model years with the biggest price drops — as well as the 10 with the biggest increases. To be eligible for the list, a model had to have 500 cars in Cars.com's national inventory.

Pontiac G8 Used Prices Slide, Buick LaCrosse Strengthens

Late-model used-car prices declined for the sixth straight month in December, dropping on average $115 from Nov. 1 to Dec. 1 to $21,711. That's the lowest average price we've seen in Cars.com's national used-car inventory since February 2012.

GM models topped both our list of the biggest drops and highest increases. Last offered as a 2009 model and beloved by car enthusiasts, the Pontiac G8 saw the biggest price decrease for the month. The sport sedan shed 7% (about $1,600) of its average asking price, settling at $22,456. Perhaps the looming winter months are motivating sellers of this rear-wheel-drive car. Prices for used Chrysler 200s and Mitsubishi Endeavors also declined by 7%, but they saw smaller dollar-amount decreases.

Experts: Used-Car Prices to Rise in Wake of Hurricane Sandy

Hurricane Sandy will cost the East Cost billions in loss and repairs, and used-car shoppers will have to open their wallets even wider to buy a replacement vehicle. The storm took out thousands of vehicles, and the National Automobile Dealers Association predicts that prices of used cars will rise 0.5% to 1.5% as a result.

"The loss of used-vehicle supply and the increase in replacement demand after Hurricane Sandy will have the greatest impact on used-vehicle prices in December," Jonathan Banks, executive automotive analyst with the NADA Used Car Guide, said in a statement.

Lexus RX 350 Used Prices Tumble in October; Ford Crown Vic Claws Its Way Back

In last month's used-car price report, we were surprised to see the average price for a used Lexus RX 350 spike nearly $6,000, making it one of the biggest price movers September. Well, it's one month later, and the party is already over. All of the RX's September gains — and then some — were erased in October with a 17-percent drop ($6,954) to $32,927.

Have overly confident sellers been humbled, or is there another force at work? Whatever the reason, the RX saw the biggest drop in October — a tough prescription to swallow for some sellers, I'm sure.

Used Cars Still Expensive, But Prices Are Falling

A sustained rise in new-car sales has boosted the supply of late-model used cars, and now ADESA Analytical Services reports the average wholesale price — what the dealer pays for a used car at auction — hit $9,550 in September, 2.1% below year-ago levels.

It's the latest bit of good news for used-car shoppers, and it caps price drops in the 4% range all summer, ADESA said. September's drop represents less relief, but prices are still falling. Large cars, vans and full-size SUVs bucked the trend with price increases in September, but small and midsize cars saw modest drops. Midsize and large crossovers (down 5.1%), luxury cars (down 5.9%) and midsize SUVs (down 11.2%) saw the largest drops.

That's not to say used-car prices are back to pre-recession levels, or will be anytime soon. In September, auction facilitator Manheim's Used Vehicle Value Index remained a few points below its 2011 highs, but it still outpaces any level before April 2010. And in August, CNW Marketing Research said the average used car sold for $11,138 at a franchised dealership (e.g., Bob's Honda) and $8,936 at an independent dealer (e.g., Bob's Used Cars). That's still $668 and $438, respectively, over August 2009 levels.