Used Car Prices up 8.5% Since Last Year
Used car prices are rising, and so is the number of people buying them.
The average price paid in the U.S. for a used three-year-old vehicle was up nearly $1,500 - an 8.5% increase from a year ago.
This is good news for those selling or trading in, but not for buyers who will have to pay higher prices.
Tight supply is one factor driving up used car prices. Automakers are responding by emphasizing their certified pre-owned car (CPO) programs.
CPO cars sell for a higher price, typically $1,000 more, because they are pre-inspected and carry an extended factory warranty.
As the price of used cars has climbed, and incentives remain strong on new cars, in some cases new cars are cheaper to buy than their one-year-old counterparts.
Savvy shoppers who do their homework can walk away with great deals and still get that "new car" smell.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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