Why used car prices are going to remain high

[javacontour]

http://content.usatoday.com/communities/...rk#.T_2JePJApvA

While USA Today isn't the best source of news, this seems to confirm many of the points we've been making here, and added some value figures.

A period where new car sales barely, if at all, outpaced the number of car scrapped, a growing population, and folks hanging on to their cars longer are some of the reasons cited for higher used car prices.

 

[95busa]

Thats if you buy at a dealer. Craigslist is freaking awesome.

 

[addyguy]

I know I always buy used, but in todays market, I don't know why anyone would buy a nearly-new car.

The new car market is very, very competitive, with lots of models out there, and dealers desparate to sell. With interest rates pretty well as low as they can be, and no sign they will move up anytime soon, getting a loan for a brand-new car seems a no-brainer.

 

[SrDriver]

South of town here not far from the Florida line there is a car auction place.

Prices here for good used vehicles are high! Many dealers from the rust belt comes here and load up on rust free vehicles and truck them up north.

 

[IndyIan]

Originally Posted By: addyguy
I know I always buy used, but in todays market, I don't know why anyone would buy a nearly-new car.

The new car market is very, very competitive, with lots of models out there, and dealers desparate to sell. With interest rates pretty well as low as they can be, and no sign they will move up anytime soon, getting a loan for a brand-new car seems a no-brainer.

Chrysler especially seems to be pushing new prices down quite low. $19k for a new Caravan, $23.5k for a 4x4 extended cab Ram, $16k for a 200? I see 2-3 year old ones advertised at the same prices.

 

[hattaresguy]

Yep, simple economics. Don't worry in a few years the market will correct.

I remember when I bought my first car in 2002 it was a 93 Camry in really good shape with 120k on it...for $3,500.

I have seen similar 2003 Camry's today for over twice that, but the market will correct.

 

[L_Sludger]

Prius prices are ridiculous. They were $5000 or so for a 2004-2005 model a couple years ago, now they're $8000+++.

 

[CBR.worm]

Yeah, my G35 has actually gone up in value over the last year. Still not worth selling though. The replacements have also gone up in value. Kind of like houses a few years ago...

 

[01rangerxl]

I wish I had kept my old Ranger and Explorer, though I didn't have parking for them at the time anyway. I would have gotten much more money for them.

The good thing is, the time when I sold my Explorer made it impossible for it to be C4C'd. Even if the old rot bag did finally get junked, the 4.0 is probably still clacking away in something else. Going to take more than a gubment program to take that thing out.