Used Car Supply Drops, Prices Rise [AUDIO]
If you are seeking to buy a used car right now, be prepared for some sticker shock.
According to the National Association of Automobile Dealers, the average used car price will rise 2 percent this year after rising an average of three percent last year. The NADA says used stickers average $11,850 for cars or $19,050 for light trucks.
Jim Appleton of the New Jersey Coaltion of Automotive Retailers says people are holding on to their vehicles longer because of concerns about jobs, less credit available with which to purchase a new car and less consumer confidence in the economy at the present time.
In some cases, a weak jobs market means consumers who are out of work are keeping the ride they have for the time being. Appleton says used vehicles are a commodity, and with less of them around, the price will increase.
The good news is that NADA also is predicting an increase in new car sales for the year, so the inventory crunch isn’t going to last forever.