Used Car Prices Up 16 Percent, Many Domestics Now Holding Value Better

SANTA MONICA, Calif.--Edmunds.com, a resource for online automotive information, report that three-year-old used cars currently sell for about 16 percent more than they did this time last year. Typically, used car prices rise 4.6 percent from year to year.

“The remarkable price increase is easily attributed to basic economic principles: used car supply is down, and demand is up. Why is supply down? In recent years, automakers largely withdrew from leasing and now the effects are starting to kick in, so off-lease inventory is starting to dry up. Also, thanks to relative softness in the new car market, there aren’t as many used cars being traded in. Meanwhile, demand is up because many traditional new car shoppers are now considering used due to the economy,” said Edmunds.com Analyst Joe Spina, who is responsible for the Edmunds.com True Market Value® Used Vehicle Appraiser data.

Domestic cars are benefitting the most from the price spike. Three-year old domestic cars are selling for about 18 percent more than they did this time last year, while European used car prices fell during the same period. The following chart sets forth the data for each region of origin:

Slicing the data by segment, minivans jumped the most, 27.1 percent, while midsize cars fell 1.6 and was the only segment to post a decline. Notably, many of the Japanese midsize cars are selling at lower prices while domestic and Korean midsize cars are commanding higher prices.

The following chart sets forth the data for each segment:

“Barring any other atypical market forces or dramatic changes in gas prices, we expect that used car prices will be stable over the next few years – which is good news for consumers who plan to trade in soon,” Spina told Edmunds’ AutoObserver.com.

Shoppers considering a used car will likely find the following resources useful:

10 Steps to Buying a Used Car

Some New Cars Now Cheaper Than Used

Buying vs. Leasing vs. Buying a Used Car

What are Certified Used Vehicles?

About Edmunds Inc. (http://www.edmunds.com/help/about/)

Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value^®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.