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.
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