Latest Online Edition  Read Here

Prices Rise for Older Used Cars

Prices Rise for Older Used Cars Featured

The average transaction price for a used vehicle was $19,227 in the second quarter, up 2.1 percent from the second quarter of 2016 and a new second quarter record, according to Edmunds.
The price spike is hitting the lowest end of the market hardest because cars 6 years old and older are holding their value much better now than they used to.
Five years ago, a 10-year-old used vehicle retained an average 21.1 percent of its original MSRP, while in the second quarter of this year, it held 26.4 percent. At the same time, shoppers who have a bit more to spend and are looking for a newer used car may be able to find unexpected bargains. A glut of off-lease vehicles and rising incentives are putting pressure on the residual values of newer cars, causing them to depreciate more quickly.
Edmunds' analysts found that while a one-year-old used vehicle retained 76.6 percent of its value in the second quarter of 2012, this year that amount has dropped to just 70.9 percent. Car segments have been hit the hardest: one-year-old subcompact cars are worth 15 percent less than they were five years ago, midsize cars are worth 9.5 percent less, and large cars are worth 8 percent less.

Last modified on Wednesday, 06 September 2017 16:49
Rate this item
(0 votes)

Dealer News

OVE Offers New Channel for Dealers

OVE Offers New Channel for Dealers

Manheim launched a new OVE Dealer Direct Event sales channel....

Auction News

Consultants Sign Another Auction

Consultants Sign Another Auction

Auction Management Solutions (AMS) announced that earlier...

Legal News

State Hits Auto Dealer with Restraint Order

State Hits Auto Dealer with Restraint Order

A Kansas auto dealer has been sued by the state for violating state consumer protection laws and...

Financial News

Experts Say Tax Season Changes Are Here to Stay

Experts Say Tax Season Changes Are Here to Stay

ORLANDO, Fla. – Changes to the timing of tax refunds caught many dealers by surprise last year. The...