Used Car Prices at Lowest Levels in 4 Years
SANTA MONICA, Calif. -- Used car prices have hit their lowest levels in four years, according to Edmunds.com. The data suggest that the used car market is finally softening after years of what Edmunds calls “notoriously elevated” prices.
According to Edmunds.com's Used Car Market quarterly report, the average used car sold by franchise dealers in the third quarter went for $15,617. The average price was 2.8% lower than in the previous quarter and 0.9% lower than in the third quarter of 2012. The last time used car prices were so low was the third quarter of 2009, when the average car sold at a franchise dealership was $14,808.
"Now that the new car market has hit its stride, buyers are no longer drawn to used cars the way they have been in recent years," said Joe Spina, director of used car analysis, in a prepared statement. "Used car prices will likely continue to decline in the coming months simply because there will be more of these vehicles sitting on dealer lots."
While softer prices are a good sign for used car buyers, Edmunds.com points out that prices still are relatively higher than before the Great Recession. Average used car prices crossed the $15,000 threshold for the first time at the end of 2009 and have remained there since. At their peak, used car prices averaged $16,473 in the second quarter of 2011.
Shoppers looking to find the best deal on a used car might want to consider brands such as Volvo, GMC and Chevrolet; vehicles produced by those three automakers sat on used dealer lots longer than any other brand in the third quarter, Edmunds found. At the other end of the spectrum, Japanese brands such as Honda, Toyota and Lexus were in the most demand -- and therefore likely carried the most elevated prices.
Published by The Business Journal, Youngstown, Ohio.
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