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William Maley

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

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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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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

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

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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.

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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.

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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.

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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......

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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.

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    • By William Maley
      With more people trending towards trucks and utility vehicles, it would be expected that prices on cars would be falling. But not on used cars according to Edmunds.
      In their latest Used Car Report, Edmunds says the average price for a used subcompact rose 3 percent in the first quarter. Compacts saw their average price increase by 3.9 percent. The reason according to the report is due to the increasing cost for a gallon of gas. 
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      Source: Edmunds

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    • By William Maley
      With more people trending towards trucks and utility vehicles, it would be expected that prices on cars would be falling. But not on used cars according to Edmunds.
      In their latest Used Car Report, Edmunds says the average price for a used subcompact rose 3 percent in the first quarter. Compacts saw their average price increase by 3.9 percent. The reason according to the report is due to the increasing cost for a gallon of gas. 
      "Used-car shoppers are typically more price-sensitive to changes in the market, but this is the first time in years that we're seeing renewed demand for smaller vehicles With rising fuel costs breathing fresh air into this segment, subcompact and compact cars are finally retaining value again," said Ivan Drury, senior manager of industry analysis at Edmunds.
      With rising gas prices, the expectation would be that prices on used trucks and utility vehicles would drop. But Edmunds says prices for these models are holding steady as buyers are willing to pay a bit more at the pump as they place "value on increased cargo capacity, ride height, and other SUV and truck features". 
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    • By William Maley
      Luxury automakers have been taking full advantage of the high-demand for SUVs and crossovers and raking in the dough. But as Neuton's third law of physics tells us, "for every action, there is an equal and opposite reaction." In the case of luxury automakers, they have a number of sedans and coupes from lease turn-ins that they cannot sell.
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