RealCarTips Logo

Used Car Prices at Record Highs

May 12, 2011

Used car prices hit the stratosphere last month, setting an all time record.

The combination of low supply and increased demand is the main culprit, with Japan's parts shortages adding fuel to the fire.

The biggest price increases are on hybrids, compacts and subcompacts thanks to rising fuel costs.

If you're in the market to sell or trade-in your used car, then it's all good - at least until August.

At that point gas prices are expected to drop back to normal levels.

Keep in mind that if you leased a car within the last 3 years and the lease is coming to an end soon, your vehicle is probably worth more than the buyout price.

You could potentially make several thousand dollars by "flipping" it - essentially buying it, then reselling it right away. (See: How to Profit from an End of Lease Buyout.

Though used car prices are high, you'll still get a better deal than buying new as long as the vehicle is at least 2 years old.

Analysts expect used car prices to start heading lower in October.

That's when the new car market will likely rebound from Japan's troubles, making the used car market soft and thus giving you a better deal.

My Recommendation for Car Shoppers

TrueCar and RydeShopper 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

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
  • Best Rebates, Incentives, and Lease Deals
  • Latest Car Buying Scams and Tricks
  • The Best & Worst Time to Buy a Car
  • Which Cars You Should Avoid
Enter Your Email Below

(Absolutely NO SPAM, easy to unsubscribe)
×

Gregg Fidan

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.

Latest Weekly Car Buying Tips    RSS Feed

April 2, 2020
March 26, 2020
March 19, 2020
March 12, 2020
March 5, 2020
February 27, 2020
February 20, 2020
February 13, 2020
February 6, 2020
January 30, 2020
January 23, 2020
January 16, 2020
January 9, 2020
January 2, 2020
December 26, 2019
December 19, 2019
December 12, 2019
December 5, 2019
November 28, 2019
November 21, 2019
November 14, 2019
November 7, 2019
I welcome your car buying questions. Email Me and I'll be glad to answer them!