As the price rises on new cars, the demand for used cars continues to climb.
The average price for a new car hit $48,043 in June, the highest price on record, according to automotive research company Kelley Blue Book. The average used car in the U.S. sold for $28,312 in May, $60 less than in April, the company said.
“The good news is used car prices have come down a little bit,” said Kelley Blue Book Executive Editor Brian Moody. “Of course, they’re still up about 12 percent versus a year ago. Used cars are somewhat expensive, but not at the records as they were before.”
Moody said one reason for the slight price drop is a higher supply of pre-owned vehicles.
“If I was a consumer and I was looking for a car right now, I would definitely be looking at lightly used cars, especially certified pre-owned cars,” Moody said.
Joe Moussali, a pre-owned group manager with McGovern Automotive Group, said the used car market is very strong.
“People are buying used cars at a very high level right now,” Moussali said. “It’s all because of new car inventory being limited within our 18 new car stores.”
Moody said consumers should looks for a car that is three to five years old so the warrant is still intact. For the best deal, Moody said to avoid the most popular types of cars.
“You can sometimes get a better deal on a sedan or a hatchback. They aren’t as popular but they have many of the same safety features,” Moody said. “They’re just as useful or convenient and those cars get better gas mileage than big SUVs or trucks.”
According to Moody, the inexpensive used cars — those selling for $10,000 or less — are in short supply.
“You’re going to have a hard time finding a good car for under $10,000, depending on where you live,” he said. “The inexpensive cars have the least amount available.”
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