Right Time to Buy for Three-Year-Old Vehicle Owners, Say Edmunds
Recent trends in interest rates and used-car values make this a good time for dealers to contact their customers who are driving three-year-old vehicles to see if they are interested in lowering their monthly payments.
SANTA MONICA, Calif. — Recent trends in interest rates and used-car values make this a good time for dealers to contact their customers who are driving three-year-old vehicles to see if they are interested in lowering their monthly payments.
Thanks to a downward trend in interest rates and an increase in used car values, consumers who own three-year-old cars have the opportunity to get a lower monthly car payment by buying a new car, according to Edmunds.com.
According to analysts at Edmunds.com, trade-in values for three-year-old cars were up 10.3 percent in October 2010 compared to October 2007, while interest rates on 60-month auto loans have declined from an average of 7.4 percent in October 2007 to 4.7 percent in October 2010.
“It is a terrific time to sell a used car since they are in high demand right now,” noted Edmunds.com Analyst Joe Spina. “That is especially true for cars that are three years old and newer since they often qualify for automakers' certified pre-owned vehicle programs, making them quite valuable to dealers who can sell them for a premium after certifying them.”
Edmunds.com noted that many new cars are actually less expensive than some one-year-old used cars. Click here for a complete list of vehicles.
The following three-year old vehicles are among those that lead their segments in average True Market Value price increases since October of last year.
Average Used True Market Value | |||
Model | October 2010 | October 2009 | Change |
Chevrolet Suburban | $26,398 | $20,538 | 28.5% |
BMW X5 | $38,605 | $31,084 | 24.2% |
Chevrolet Tahoe | $23,926 | $19,771 | 21.0% |
Jeep Wrangler | $20,231 | $17,096 | 18.3% |
Hummer H2 | $33,570 | $29,478 | 13.9% |
Toyota Tacoma | $18,269 | $16,317 | 12.0% |
Hyundai Tucson | $13,608 | $12,202 | 11.5% |
Dodge Dakota | $14,884 | $13,469 | 10.5% |
GMC Canyon | $14,746 | $13,553 | 8.8% |
Volvo V70 | $21,309 | $19,957 | 6.8% |
The chart below lists year-over-year used-car price increases by vehicle segment.
Average Used True Market Value | ||||||
Segment | October 2010 | October 2009 | Change | |||
Standard Compact | $ 9,473 | $ 9,238 | 2.5% | |||
Premium Compact | $ 10,564 | $ 10,338 | 2.2% | |||
Midsize | $ 13,767 | $ 13,628 | 1.0% | |||
Standard Sport | $ 15,559 | $ 15,152 | 2.7% | |||
Premium Sport | $ 34,088 | $ 32,168 | 6.0% | |||
Fullsize | $ 14,650 | $ 14,175 | 3.4% | |||
Standard Luxury | $ 22,875 | $ 20,621 | 10.9% | |||
Premium Luxury | $ 29,192 | $ 28,717 | 1.7% | |||
Compact Pickup | $ 16,271 | $ 14,460 | 12.5% | |||
Fullsize Pickup | $ 20,339 | $ 19,112 | 6.4% | |||
Mini SUV | $ 16,144 | $ 14,612 | 10.5% | |||
Midsize SUV | $ 18,403 | $ 17,988 | 2.3% | |||
Fullsize SUV | $ 24,531 | $ 19,483 | 25.9% | |||
Luxury SUV | $ 29,371 | $ 26,690 | 10.0% | |||
Mini Van | $ 16,989 | $ 15,784 | 7.6% | |||
Fullsize Van | $ 13,022 | $ 12,140 | 7.3% | |||
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