At auto auctions, where dealers buy from other dealers, prices for used compact cars have skyrocketed. Dealers paid $9,385 in July for the average small used car, a 23 percent jump from last year. Midsize vehicles rose only 5 percent, and heavy weights dropped a whopping 25 percent.
Dealers and consumers both are scrambling for smaller used cars, despite higher prices for consumers and lower profit margins for the dealers. Small cars now sit an average of 22 days on dealer lots; that’s less than a third of the time in 2007. The hard numbers of small used cars available have also shrunk, limiting consumer choice.
Regardless, used SUVs and pickup trucks is still a live market, especially with the aggressive cuts in pricing. Dealers are hoping sales will pick up with the recent fall in gas prices. Currently used SUVs and pickups are sitting an average of 70 days on dealer lots.
Our take? At least those shopping for larger vehicles will probably get more choices and a better deal. You might even have saved money for a few years if you don’t drive too much.
via TMCnet