Used Car Prices Should Remain High in 2012
Prices on used vehicles are expected to remain high in 2012 due to a continued shortage of inventory.
The number of used cars available today is dependant on the number of new cars that were sold in the past 3 years.
There were only 10.3 million and 11.6 million new cars sold in 2009 and 2010, compared to average levels of 16 million in prior years.
To make matters worse, leasing took a huge nosedive, so there are few lease-returns coming back right now.
The good news is that higher used car prices make new cars more attractive. The year-over-year depreciation rate on 2010 models was only 6.6%.
Some experts are predicting increased incentives on new vehicles during the first quarter as Honda and Toyota try to gain back market lost market share.
If you currently have a used car you want to trade-in or sell for a new one, this is a good year to do so.
Used car prices are expected to keep increasing from now until summer.
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.
New York Tri-State Residents - Important:There is a new car leasing service called Carvoy, available to NY tri-state area residents, which I recommend you try - especially if you hate the stress of haggling with car dealerships. Carvoy provides pre-negotiated lease deals, calculated with taxes and all fees incuded so you know exactly what it will cost. Here is my list of Best Carvoy deals, updated each month.
- 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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