Considering a pre-owned vehicle instead of a brand-new model? Going used is generally a good idea but you may want to think twice about the decision because prices are creeping upward.
According to the National Automobile Dealers Association (NADA), the wholesale cost of second-hand cars and trucks up to eight years old increased by 3.7 percent last month. That’s on top of a 2.2 percent jump the month before.
Because of the grim weather that hammered large swaths of the country last winter, many dealers bid aggressively on used vehicles as they tried to increase their inventories. This of course helped push prices higher and higher.
The segments that saw the largest price increases were the ones that saw declines in auction volume. Compact and midsize cars as well as vans fell significantly and as a result prices for vehicles in these three segments increased by an average of 4.4 percent. The price of luxury models also increased, though the jump was fairly modest in comparison clocking in around 1.3 percent.
As for the month of April, NADA projects that prices will fall anywhere between 1.8 and 2.2 percent compared to March, which is a good thing for consumers. If you’re looking for value steer clear of pre-owned midsize cars, SUVs and minivans; they saw the greatest upward price movement last month.