When Used Cars Costs More Than New

Washington DC November 10. 2010; The AIADA newsletter reported that the Wall Street Journal asked if car buyers think buying a used car will keep your monthly auto payment down?

In a rare reversal, you now could pay less for a new one reports Joseph B. White at the Wall Street Journal. he wrote that values for late-model used cars and trucks – especially trucks and SUVs – have jumped during the past year to the point that in some cases, the monthly payment on a one-year-old vehicle could cost you more than a new one.

Prices in the used-vehicle market, in October reached the highest level since January 1995, according to the Manheim Used Vehicle Value Index. If your old ride is in good condition and five years old or less, you may get a better trade-in offer, or selling price, than you could have expected a year ago.

Thanks to production cuts and the dearth of new model sales in 2008 and 2009, supplies of late-model used pickups and SUVs are now relatively tight. The result: Used pickup values are up 10.1 percent compared with a year ago, according to Manheim's data. SUV values are up 5.6 percent.

The gains in both truck segments beat the 3.7 percent rise Manheim calculates for midsize and small cars.

Click here for White’s report