CHICAGO, April 13, 2011 /PRNewswire/ -- Research conducted
by Cars.com, a leading online resource for people buying and
selling new and used cars, found that the average retail price of a
used car is on the rise. While conventional wisdom dictates
that a vehicle consistently depreciates over its lifespan, changes
in the used-car marketplace have actually pushed prices higher.
"A year ago, 2007 Hyundai Elantra GLS with about 40,000 miles
was listed for about $9,900," said
Patrick Olsen, Cars.com Editor in
Chief. "Today, that same 2007 Hyundai Elantra GLS with a few
thousand more miles has increased in price by $200. While most people would expect the
value of their used car to drop year-over-year, what we're seeing
is that used cars are actually appreciating in value right
now."
Cars.com found that across all major manufacturers, the average
price of a used car increased 10 percent over the last year, with
Hyundai (22 percent), Mercury (19 percent) and Ford (14 percent)
showing the highest gains. Among the top 15 used cars
searched on Cars.com, the Chevrolet Camaro saw the highest increase
in price ($2,312 or 16 percent year
over year), followed by the Ford F-150 ($1,889 or 14 percent year over year). On
average, the asking price among the top 15 used cars searched on
Cars.com rose five percent – or $771
– year over year.
According to Olsen, it's a basic example of the laws of supply
and demand. "'Cash for Clunkers' played a big part in
creating the shortage of quality used vehicles in the market," he
said, "but there are a number of other mitigating factors at work.
The sluggish economy has pushed more people out of the new
car market into the used car market. Automobile leasing is
another important consideration – three years ago manufacturers
weren't offering very many lease specials, and vehicles coming off
leases are usually a large part of the used car supply."
This is not necessarily bad news for consumers, Olsen said.
"Late-model used cars can still be a terrific bargain for
shoppers, as most of a car's depreciation will take place during
its first year. And rising values for used cars can also mean
your trade-in has likely also risen in value, as dealers look for
vehicles to fill their used car lots. When you're ready to
buy a car, it's less important to worry about small fluctuations in
wholesale and retail prices, and more important that you've done
your research to ensure you're getting the best value for your
trade-in and the best price for your next car."
ABOUT CARS.COM
Cars.com was recently named the "Best Overall Customer
Experience" by Keynote Systems, the world's leading Internet usage
research company. Cars.com is an online destination for car
shoppers that offers information from consumers and experts to help
buyers formulate opinions on what to buy, where to buy and how much
to pay for a car. With price listings, side-by-side comparison
tools, photo galleries, videos, unbiased editorial content and a
large selection of new- and used-car inventory, Cars.com puts
millions of car buyers in control of their shopping process with
the information they need to make confident buying
decisions.
Launched in June 1998, Cars.com is
a division of Classified Ventures, LLC, which is owned by leading
media companies, including Belo (NYSE: BLC), Gannett Co., Inc.
(NYSE: GCI), The McClatchy Company (NYSE: MNI), Tribune Company and
The Washington Post Company (NYSE: WPO).
SOURCE Cars.com