CNN Money reports that prices on used vehicles may drop as discounts on new cars lead to a glut of trade-ins. Translation: now may be the time to buy a used car at a great price. Why are prices so good? Consider these facts:
"A report published in USA Today Friday said soaring new car sales are swamping dealers with trade-ins, resulting in a glut of used cars that could deflate prices."
" 'I suspect all dealers will have the used car sale of a lifetime,' Jerry Reynolds of Prestige Ford in Garland, Texas told the newspaper. The report said the number of vehicles on his used car lot hit 410 this week, up from the usual 250, which prompted him to start his own promotions."
"As consumers take advantage of the employee discount promotions offered on 2005 models, dealers are taking in loads of trade-ins, the newspaper said. The program that gives buyers the same price that automakers' employees are offered was supposed to end Aug. 1 but were extended by a number of automakers."
"In the report, Paul Taylor, chief economist for the National Automobile Dealers Association, said used car prices could drop as much as 5 percent from their recent peak after steadily increasing for more than a year. There's already evidence of that trend, Tom Webb, chief economist for Manheim, the nation's largest wholesale auto action, told USA Today. He told the newspaper that prices in wholesale markets are heading south, down 1.2 percent from May to June."
If you're looking for a good buy on a used car, this may be the best time to get one.
Comments