Industry News: The Average Price of A Used Car Has Reached A New High

[William Maley]

With the average price of new cars on the rise, the price of used cars follows suit. A new study done by Edmunds finds the average price of a used car has hit a new record high in the second quarter. The average price of a used car has climbed to $18,800, up 7.6 percent when compared to the same time last year.

 

"People are buying more trucks and SUVs, and they're getting them better equipped. More expensive new vehicles means more expensive used vehicles," said Jessica Caldwell, analyst at Edmunds.com.

 

What is causing the uptick in used car prices? The same items which are causing new car prices to go up; better economic outlook, low unemployment, low-interest rates, and low gas prices.

 

But also helping the increase is the amount of off-lease vehicles entering into the used car marketplace.

 

"With inventory finally at a better place, people have a lot more options," Caldwell said.

 

Source: Chicago Tribune via The Detroit News

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[regfootball]

new and used prices go up when the credit faucet is wide open.

 

people can't afford this stuff unless the rates are low and they are lending

[loki]

and it's very unlikely the FED will change the prime interest rate....or whatever it's called

[David]

and it's very unlikely the FED will change the prime interest rate....or whatever it's called

Especially with the Stock markets craziness and China pretty much crashing.

[Frisky Dingo]

There has to be some way this is the dealers' fault!

[regfootball]

This is also pent up demand still from the 3-4 years that no one bought cars hardly. But still they drive cars

[ponchoman49]

Not surprising considering how much more technology that is being stuffed into these cars. Tires are bigger and bigger. More and more std equipment. Subscriptions to things like Onstar and Satellite radio add to these monthly payments and now wifi is being offered. It's small wonder so many people are broke and filing for bankruptcy these days.

[Drew Dowdell]

This is also pent up demand still from the 3-4 years that no one bought cars hardly. But still they drive cars

Average age of cars is also increasing though, even after cash for clunkers too a chunk of older vehicles off the road.

[daves87rs]

Why I am keeping the lower end of the market myself.

 

If I stay GM, either a LS/LT new Cruze or a WT Colorado....don't like cars with way too much stuff in them. Would rather add them myself......

[El Kabong]

This is also pent up demand still from the 3-4 years that no one bought cars hardly. But still they drive cars

Average age of cars is also increasing though, even after cash for clunkers too a chunk of older vehicles off the road.

That's just the result of cars being better-built today than ever. Even the clinkers they took off the road were probably pretty solid lumps.