Used Car Prices Going Up Short Term
This is due to a spike in prices attributed to the "cash for clunkers" program.
Under the program, up to 750,000 cars will be scrapped rather than being resold.
This is a huge reduction in inventory which drives the values of existing used cars higher.
Furthermore, many dealers are reporting an increase in used car sales after consumers come to the dealership only to find out their trade-in doesn't qualify as a clunker. Since they're already at the dealership, they end up buying a late-model used car.
The spike in used car prices is predicted to collapse after the cash for clunkers program ends.
If you're looking to buy a used car, wait until the end of the year. If you're looking to sell your used car, you may want to take advantage of the temporary spike while it lasts.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow 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