By on May 31, 2012

Did we tell you a month ago to sell your used car now if you want to get the most mullah out of your clunker? We (or rather NADA) called the peak correctly. Used car prices are heading south.

Said Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide:

“The trend of rising prices for used cars will reverse course in June because of declining gasoline prices combined with a normal seasonal slowdown in consumer demand for used cars.”

Model Year

Make/Model

Jan.

May

Jan.-May
(% Chg.)

June

 

June vs. May
($ Chg.)

June vs. May
(% Chg.)

2009

Toyota Camry

$11,510

$13,235

15%

$12,560

$675

– 5%

2009

Honda Civic

$10,987

$12,187

11%

$11,587

$600

– 5%

2011

Toyota Prius

$18,875

$21,225

12%

$20,325

$900

– 4%

2010

Hyundai Elantra

$10,742

$12,167

13%

$11,667

$500

– 4%

2011

Nissan Versa

$10,527

$11,702

11%

$11,252

$450

– 4%

2009

Dodge Caliber

$8,132

$9,157

13%

$8,807

$350

– 4%

2011

Ford Fusion

$14,237

$15,662

10%

$15,112

$550

– 4%

2009

Chevrolet Cobalt

$7,465

$8,565

15%

$8,265

$300

– 4%

Nada figures that  used-car values will decline by about 2 percent, while truck values will fall by about 1 percent. Prices for used compact and midsize cars will fall by an average of 2.4 percent, Nada predicts.

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18 Comments on “Used Car Prices Heading South...”


  • avatar
    ltcmgm78

    I would like more “moolah” for my clunker. If a “mullah” is involved, he can stay in the trunk at trade-in!

  • avatar
    Jeff Waingrow

    Ah, just beat me to it!! On the other hand, maybe Bertel was suggesting a way to get rid of two clunkers in one shot.

    • 0 avatar
      daveainchina

      Ouch.. then again, maybe he wanted someone preaching for lower car prices? Bah I can’t make it funny..

      Still Bertel, a Mullah is an Islam priest..(usually not considered in high esteem right now in the USA) we’re pretty sure you meant moolah, as in $$$.

      this time you might want to correct it.

  • avatar
    dts187

    In 09 I bought an ’08 Caliber w/31k miles to use as my work car. I paid $9500. I just sold it last month with 105k on the clock for $7500. I temporarily love the used car market.

  • avatar
    Nikko River

    I imagine that it will still be a while before we see normalized used car prices (if Steve’s experience at recent auctions is anything to go by).

  • avatar
    twotone

    Everything eventually needs an economic correction whether it’s used cars, real estate or facebook stock.

    • 0 avatar
      gslippy

      With used car prices dropping, this will tend to reduce demand on new cars.

      • 0 avatar
        NormSV650

        Gslippy, don’t rain on Bertel’s Toyota is number one again ramp-up!

      • 0 avatar
        CJinSD

        This is probably driven by trade-ins resulting from the 50 to 100% sales increases seen at Honda and Toyota dealerships. If it ends up hurting the sales of new blue-light specials, that’s trouble for Chevy, Dodge, Hyundai, Kia, and Nissan.

      • 0 avatar
        Pch101

        “With used car prices dropping, this will tend to reduce demand on new cars.”

        You have it backwards. Used car sales prices are declining because there is a decreasing demand for used cars as a substitute for new ones. Increasing consumer confidence and increased credit will help new car sales at the expense of used cars.

      • 0 avatar
        gslippy

        @Pch101:

        You may be quite right; I hadn’t thought of it that way.

    • 0 avatar
      daveainchina

      You haven’t been to China yet. They somehow are managing to avoid the rather serious housing bubble correction here. Should’ve happened a while ago, but magically it doesn’t experience a correction.

      I fear that when it does, it will be more of a crash than a correction. This system is way out of balance, and definitely unsustainable.

  • avatar
    Gardiner Westbound

    Decent three or four year old, one-owner cars are scarce in Ontario and the sellers are looking for crazy, stupid amounts for them.

    • 0 avatar
      bikegoesbaa

      Are they actually getting their asking price, or close to it?

      If so, then it’s probably not crazy or stupid at all.

      • 0 avatar
        highdesertcat

        In my state, they’re getting asking price because New Mexico is one of the states that issues drivers licenses to illegal aliens, and all those illegals need wheels to get around to the other parts of the country.

        And NADA is overlooking the individual sales that do not involve dealers (which they represent). Dealers may have seen an increase in trade-ins but that is probably driven by the new-car sales, including the meteoric rise in sales at Toyota, Chrysler, et al.

  • avatar
    daveainchina

    Wait, how can you get a DL as an illegal alien? I thought since 9/11 all the many forms of ID requited to get a DL would prevent that. I thought this was required by the Federal government because many of the people during 9/11 had obtained ID and shouldn’t have been able to get it.

    Are they just faking birth certificates etc? something doesn’t make sense, either New Mexico is violating the Federal standards or NM doesn’t do a very good job of checking the ID required to get a DL.

    • 0 avatar
      highdesertcat

      It’s easy. An illegal alien from anywhere, not just Mexico, goes up to the DMV window, requests a DL, pays the money, gets their picture taken and their DL issued on the spot. No hassles. No questions asked.

      New Mexico is an overwhelmingly Democrat state and the Democrats put this into law a long time ago. Who knows what they were thinking? The current Republican Hispanic Governor has tried to repeal this law but will never be successful.

      A NM DL is the launching pad for illegals traveling legally on America’s roads in uninsured cars. If your insurance company has forced you to buy Uninsured Motorist insurance, in essence paying the premiums for those driving without insurance, this is at the core of it all.

      My Uninsured/Under-insured Motorist premiums are like paying double for the coverages on my cars and truck.


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