Used Car Prices Hit Record High
Used car prices have hit an all time.
The Manheim Used Vehicle Value Index rose 6.9% in September to 118.5, the highest on record. To give you some comparison, the index was at 100 in January 1995.
The reason for the price increase is simple: The supply of used cars has dwindled due to a combination of the "cash for clunkers" program and the fact that rental car companies are keeping their vehicles for a longer period, thus limiting the number of used cars entering the market.
If you're shopping for a new or used car, this won't affect you much if you have a trade-in. However, if you're shopping for a used car without a trade-in, then perhaps you should wait a few months.
Analysts are predicting the price increases won't last. Now that the "cash for clunkers" program is over, used car inventories should start creeping back up again.
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The 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 Network
Select 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 / CarsDirect
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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
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- Which Cars You Should Avoid
About The Author
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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