Industry News: Used Car Prices Are Dropping

[William Maley]

William Maley

Staff Writer - CheersandGears.com

July 30, 2013

Interested in buying a used car? Then we got some good news for you.

According to Associated Press (via The Detroit News), prices of used cars are dropping. Despite hitting an all-time high back in 2011 thanks to fewer used cars in stock, prices since then have been declining. According to to data from auction company Manheim, the average sale price of a vehicle at auction in June was $11,031, down 6 percent when compared to the peak of used car prices in May 2011.

The reason? Sales of new vehicles are on the rise, which means an increase of used cars.

Which vehicle segment saw the largest drop? That would be hybrids which saw a 15 percent drop in their three-year value. Following that are compact cars which saw an 8.5 percent drop and small SUVs with a 7 percent drop. Luxury vehicles and trucks saw the lowest drop of one percent.

Source: The Detroit News

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[regfootball]

Bubble! Too many new car sales time to scale back new push and let used come back a bit. Or, time to loosen up credit on used.

[G. David Felt]

With the recovery from the storms pretty much over, people that needed to get an auto right away are taken care of and now it is focused on other things. Plus the variety of new quality cars are making people hold off on buying an older less quality auto and buy something new. IMO

[daves87rs]

Still not down here...wow!

Don't think there will be a big drop off regardless how many new they sell.

Once you can make money you run with it....