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