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.
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and Ryde Shopper 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