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Posts Tagged ‘previously owned vehicles’

Uptick in Used Car Prices a Temporary Trend

Strong new car sales means increase in trade-ins.

by on Feb.17, 2015

Used car prices are expected to fall in 2015 as the new car sales volumes increase.

Used car prices are expected to fall again in 2015, but in spite of that expectation, they’re rising … just in time for tax refund season.

Analysts from NADA Used Car Guide forecasted used vehicle prices to continually rise by 1-1.5% in February, potentially topping out at a 2.5% increase in March.

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“The price bump in the used vehicle market is created by several factors, but one of them has to do with recently filed consumer tax returns,” said Jonathan Banks, NADA Used Car Guide’s executive analyst. (more…)

Rising New Car Sales Driving Down Used Car Prices

After years of high prices, consumers should see numbers drop.

by on Jan.19, 2015

Strong new car sales are expected to drive down the prices of used cars in 2015.

Aside from adding to the coffers of automakers, the robust sales of new cars created an additional side affect: cheaper used cars.

New vehicle sales were about 16.5 million last year, which was an increase of 5.9% over 2013. That trend is expected to continue this year, which puts pressure on those looking to sell used cars, according to analysts from the National Auto Dealers Association.

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“For the first time in 20 years, wholesale auction prices of used vehicles actually increased during December,” according to Jonathan Banks, executive analyst for NADA Used Car Guide. Banks also stated, “The 0.3% increase during the month is significant…since the average price for December the last 10 years has seen a 1.4% drop.” (more…)

Expect to Pay More for Your Next Used Car

But trade-ins will be higher, as well.

by on Feb.07, 2012

Expect to pay more for that "previously-owned" car in the months ahead.

There’s good news and bad news for used car buyers.  On the down side, prices will likely be higher due to strong demand.  But that also should translate into better trade-in prices, as well, according to an automotive industry trade group.

The National Automobile Dealers Association is predicting that used car prices will rise again but at a slower pace than in 2011. Those higher used vehicle prices will be the result of Increasing demand and a drop in the supply of previously-owned cars and trucks, said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide.

On the positive side, “Consumers shopping for either a new or used vehicle will benefit this year from higher trade-in values along with loosening credit,” Banks said.

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For dealers, reliance on customer trade-ins will increase as they strive to meet the challenges of growing demand in a supply-constrained market. Dealers are facing a particular struggle coming up with “nearly new” two to four-year-old vehicles due to the downturn in the new car market over the last four years.  In particular, there are significantly fewer vehicles coming off-lease as many lenders curtailed their leasing programs during the depths of the Great Recession.