Used Car Values Climb
May 12, 2009 by Maurina
While automakers are scrambling to get buyers into showrooms to pick up shiny new models right now, used cars seem to be having no trouble finding homes. In fact, a report by Manheim Consulting says used car sales are up by almost 9 percent compared to the beginning of the year. That’s good news for dealers and sellers alike, but the figure is still down nearly 2 percent versus last year. Given that information, it’s no surprise that the report goes on to say dealers are beginning to make up the losses they’re experiencing the new car front with more used-car sales.
That also means the value of the used car in your driveway is climbing – probably not enough to retire on, but climbing none the less. The Manheim report says the gradual rise in wholesale prices of used cars, that is, prices paid by dealers at auction, was originally thought to be driven by the lack of new car sales the market saw toward the end of last year and the beginning of 2009. Now it appears the trend is separate from new car sales all together – especially good news if you’re looking to sell or trade in your current used car right now.
Its true higher values usually mean a steeper price tag when it comes time to buy your new-to-you car, but in this case, Manheim says a number of factors are combining to be beneficial for both buyers and sellers. For one, the growth of internet-based cars sales has helped dealers limit their inventory and reduce costs, allowing them to pass some of the savings along to buyers. At the same time, the ability to find a vehicle over the Web means consumers now have access to a greater selection of vehicles than ever before, meaning it’s easier to shop around for the best deal anywhere. Now that’s progress
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