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Thinking about a used Car? Buy now, before prices rise

By Richard Read | High Gear Media – Fri, Jan 27, 2012 1:21 PM EST

Chevrolet CruzeChevrolet CruzeIf you're looking to buy a used car in the near future, you should consider grabbing one now, before prices rise. That's according to Kelley Blue Book, which expects to see used car values jump as much as 5% before March and remain high for the rest of 2012.

January is often a so-so month for auto sales, as many consumers give their bank accounts a chance to recover from holiday spending. As a result, used-car values tend to remain flat, heating up around the same time as the weather.

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But KBB is already seeing some upward movement in on-the-lot pricing. The biggest jump has been in passenger cars -- particularly mid-size, hybrid, and full-size rides, the average values of which rose $107, $86, and $85, respectively, between January 6 and January 13. Compact crossover and compact car values were up $78 and $61, respectively, during the same period.

Not surprisingly, the costliest used cars are those that have recently been refreshed. If you're hoping for a 2011 Chevrolet Cruze or Kia Optima, expect to dole out a sum closer to the original sticker price than if you went for a 2011 Toyota Corolla or Honda Accord. (The one exception to that rule might be the revamped 2012 Honda Civic, which was heavily panned by critics from the moment it arrived in showrooms last April -- so much so that executives ordered an early re-do.)

KBB expects used-car prices to remain on an upward trend for the rest of the year, and given other analysts' predictions, we tend to agree. As we saw yesterday, Americans' vehicles are aging fast, meaning that more consumers will probably be in the market for a new car soon. Add that to the recovering auto industry, and you've got a recipe for high demand -- and high prices.

Want to get the ball rolling on your used-car purchase? Find a ride near you and check out loads of used-car reviews in TCC's used car section.

 
 
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918 comments

  • Profile
    Profile  •  28 days ago
    so, My used Car is going to be worth more in a couple of Months .. Better Keep it ..
  • A Yahoo! User  •  4 days ago
    Used car prices are crazy. I was shopping for a used car but the prices were so high I ended up getting a new Ford from http://www.truecar.com since it was the same price as a used one.
  • A Yahoo! User  •  28 days ago
    Who in hell cares what Kelly Blue Book says any more?!! They have been out of the loop for 10 years!
  • Brian H
    Brian H  •  Cleveland, Ohio  •  27 days ago
    Pretty sad.....my house is depreciating more than my car !
  • Dog Face
    Dog Face  •  Birmingham, Alabama  •  28 days ago
    yeah...set to rise my foot. Its only from the dealers stand point. Try taking that car to CAR MAX and seeing what they want to give you for it.
  • Kuzin
    Kuzin  •  28 days ago
    It's amazing that car sales are down but prices keep going up.
  • Just the Facts Ma'am
    Just the Facts Ma'am  •  Boise, Idaho  •  27 days ago
    You don't hike prices during a recession if you want to sell cars. 30K for a new truck, forget it. I can pimp and paint my 2003 for 2-3K, and it still runs great.
  • Saturnfwd
    Saturnfwd  •  Appleton, Wisconsin  •  28 days ago
    Take it from a former sales mgr. ME! DO NOT trade in your car. Sell it yourself or to a friend, relative. Buy in Dec. after X-Mas and Jan. Do not buy extra warranty, gizmos, paint protection, etc.If you buy new, drive it till the wheels fall off or when it costs thousands to repair.
  • Mike
    Mike  •  Dahlgren, Illinois  •  28 days ago
    You don't understand, that car you trade in with 100,000 miles is a wore out piece of junk to a dealer. The cars they have with 100,000 miles are LOW MILEAGE.
  • GOP2012
    GOP2012  •  Redlands, California  •  28 days ago
    There will never be a better time to buy a new than right now...I have listened to that same phraise for over 40 years...Cant these stupid car dealers come up with a new catch phraise
  • Just Postin
    Just Postin  •  Cicero, Illinois  •  28 days ago
    That last paragraph doesn't make sense to me. If more Americans are going to be shopping for new cars or even newer cars wouldn't that put more used cars on the lot? The auto industry isn't recovering due to the used car market, it's recovering, because more people are buying new cars.
  • Robert
    Robert  •  Charlotte, North Carolina  •  28 days ago
    im still driving the same vehicle i bought in nov of 1988..........its almost mine
  • Buffersss
    Buffersss  •  Mendota, Illinois  •  27 days ago
    junkers that need a little work, are better than car payments
  • alan h
    alan h  •  Portsmouth, United Kingdom  •  28 days ago
    Its the used car bubble. In 10 years your car will be worth more than you paid for it. Happy days are here again!
  • mr wallace
    mr wallace  •  27 days ago
    Like it going to be cheaper next year. The best time to buy a car is when you need one. Not because you want one. And if you can pay cash you can always get a good deal. Buyer beware though.
  • zamboniee 57
    zamboniee 57  •  Webster, New York  •  28 days ago
    Tell us something we don't know!!!!! how do you think the dealerships have been surviving for the last 10 years? the avg new car owner drives the new car for 9 years !!!
  • Ugly
    Ugly  •  Houston, Texas  •  27 days ago
    Used cars by the shipload have been being exported for at least 5 years. At that time I began to see hundreds of 1 to 2 year old, full sized American sedans, pickups, SUV.s and Hummers going to So. Africa and Russia. In the past couple of weeks, in just 4 days, 6 big car carriers loaded used cars at the Port of Houston. Some head for ports where there's no effective government, like Benghazi, pay no import duty and are driven overland to Egypt or beyond. And this obviously doesn't include used vehicles driven to Mexico and Central America.
  • Gotcha!
    Gotcha!  •  28 days ago
    Given what a new car costs these days, does this surprise anyone ?
  • Film Shark
    Film Shark  •  Boise, Idaho  •  28 days ago
    The author of this article must be a part-time used car salesman.
  • ladybug
    ladybug  •  28 days ago
    I...can save you a TON of money.....DON'T BUY A CAR....It's really that easy!!!
 Post a comment

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