Car Prices Blogs


Used Car Prices on the Rise: Time to Buy a New Car Instead?

February 6th, 2012

Used car shoppers are in for a surprise: used car prices are steadily on the rise, and they show no signs of going down soon. In fact, prices are expected to rise by mid-2012.

The average price of a used car is up by as much as 1.8%, and is anticipated to rise as the year 2012 progresses.

Think that 1.8% is not enough? Consider the price of a used family sedan, one that is not more than 5 years old. The average price today is around $11,800. Back in 2009, the same car will only be sold at an average price of $10,300.

Considering the fact there are new cars which can be yours for around $12,000 or less, this further validates the claim that buying a new car is a wiser option.

Used Car Prices on the Rise: The Cause

It was not too long ago that the used car market was a haven for shoppers who wanted a decent car for less money. This was due to the fact automakers were constantly shoving new cars into showrooms. Car dealers were also giving marvelous incentives, cash backs, and discounts on new cars, hence making the deal even harder to resist. Customers were obligated to buy a new car and hurriedly traded in their old cars. The offers were just too hard to ignore.

When the financial crisis struck in late 2007 and early 2008, people held on to their old cars, which crippled the sales of new cars. Automakers reduced their production as no one wanted to take a loan on a new car during the recession.

The result? People who wanted a car bought used cars instead. The law of supply and demand takes over from this point. As the demand rises, so does the cost.

The economy is slowly recovering as we speak. There are now new cars that can be bought for as low as $10,000–brand new. Take the Nissan Versa, for example. The Versa earns the reputation for being the cheapest car sold in America today, with an MSRP that starts at $10,990 for the four door Versa sedan.

And then we have the Hyundai Accent, which starts at only $12,545. Although the base trim does not contain enough creature comforts to make it a justifiable bargain, remember that this is a brand new car, complete with the standard factory warranty.

Buying a used car is okay. Buying a new car, however, is better.

Request a free new car price quote

. This will make it easier for you to compare updated new car prices without haggling with the salesman.

This will also make it easier for you to justify whether buying a new car is more practical than buying a used car.