Used Car Prices up 8.5% Since Last Year
The average price paid in the U.S. for a used three-year-old vehicle was up nearly $1,500 - an 8.5% increase from a year ago.
This is good news for those selling or trading in, but not for buyers who will have to pay higher prices.
Tight supply is one factor driving up used car prices. Automakers are responding by emphasizing their certified pre-owned car (CPO) programs.
CPO cars sell for a higher price, typically $1,000 more, because they are pre-inspected and carry an extended factory warranty.
As the price of used cars has climbed, and incentives remain strong on new cars, in some cases new cars are cheaper to buy than their one-year-old counterparts.
Savvy shoppers who do their homework can walk away with great deals and still get that "new car" smell.
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