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 |
June
|
June vs. May |
June vs. May |
|
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.
I would like more “moolah” for my clunker. If a “mullah” is involved, he can stay in the trunk at trade-in!
+1, good one!
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.
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.
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.
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).
Everything eventually needs an economic correction whether it’s used cars, real estate or facebook stock.
With used car prices dropping, this will tend to reduce demand on new cars.
Gslippy, don’t rain on Bertel’s Toyota is number one again ramp-up!
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.
“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.
@Pch101:
You may be quite right; I hadn’t thought of it that way.
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.
Decent three or four year old, one-owner cars are scarce in Ontario and the sellers are looking for crazy, stupid amounts for them.
Are they actually getting their asking price, or close to it?
If so, then it’s probably not crazy or stupid at all.
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.
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.
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.