Used Car Prices Expected to Drop Next Year
The reason: there will be an additional 600,000 off-lease vehicles returning to the maket in 2013 than in 2012. With such a big spike in supply, there's going to be downward pressure on prices.
Some brands, such as Mercedes, are expecting nearly a two-fold increase in the number of off-lease vehicles in 2013 compared to this year. Others, such as Toyota, say their lease-returns won't spike until 2014. GM will start seeing an increase in lease-returns beginning in December of this year and see a larger increase towards the end of 2013.
Most of these vehicles will be coming off of 2 or 3-year leases, so the downward pressure will be felt mostly on late-model used vehicles, but the impact should also affect overall used car prices as well.
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