Used car prices are through the roof right now and, in some cases, are 30 percent higher than a year ago. Many consumers are buying used rather than new models. Luxury used cars are among the segments that are selling for a premium.
Edmunds.com is a site that estimates car values as part of its coverage of the automotive market. It reports that the high prices are partly due to the public’s flagging confidence in the economy:
“The average price paid in the U.S. for a used three-year-old vehicle in July 2010 was $19,248, up $1,800, or 10.3 percent, from July 2009.
” ‘Consumers are generally paying considerably more for used cars this year compared to 2009,’ stated Joe Spina, a Senior Analyst for Edmunds.com. ‘A lack of confidence in the economy is driving more people to used cars, putting upward pricing pressure on a limited supply of vehicles.’ “
Edmunds.com says the models that have experienced the largest price jumps are Cadillac Escalade, Chevrolet Suburban, BMW X5, Acura MDX and Dodge Grand Caravan.
