Used Car Prices Are Finally Dropping!
We understand that nothing quite beats the feeling of getting behind the wheel of a brand new car, but let’s be honest: that’s a luxury that not everyone can afford. Of course, pre-owned cars, trucks, and SUVs have always been an attractive option, both for drivers looking to save money for other things or for those on a tight overall budget. Well, we’ve got some great news for people who are shopping for pre-owned vehicles, and they’re likely to continue to do so.
The National Automobile Dealers Association, or NADA, is predicting that pre-owned vehicle prices will fall by roughly 3% in July of 2012. In June alone, prices have dropped by 1.6%. It’s worth noting that larger vehicles such as trucks and SUVs have been more stubborn about retaining their value. The dropping prices are led by compact and mid-sized vehicles; in June, compact prices fell by 2.5% and mid-sized prices by 2.8%, and NADA predicts that these vehicles will experience further prices drops of between 3.4% and 4.5% in July. Many experts point to tumbling gas prices as the reason that vehicles in what is largely a more fuel-conscious class are dropping price. There’s also the fact that drivers are just spending more money on things like vacations as opposed to purchasing used vehicles.
It’s not all rosy for those looking to get behind the wheel of a used vehicle, though. Used car prices are currently at historically high levels, and it’s expected that that will remain the case through the rest of the year. Overall, NADA is predicting a 0.7% increase in pre-owned vehicle prices from June to December 2012.
So what does this mean, practically? It means that the best time to buy is this summer, as prices likely won’t drop anymore then they’re predicted to in July. Which is to say that, while it may be tempting to try and wait out the prices, you probably don’t want to delay until the end of summer, as prices will likely start to tick back up around that time. Remember: it’s better to jump the gun and pay a little extra than to need to pay a lot extra down the line.
July 22, 2012 by Jamie Rettig