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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
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