Used Car Prices Start to Increase, Glut of Trade-Ins Starting to Shrink
According to USA Today, wholesale used car prices climbed the past two months, suggesting that effects from the onslaught of new car rebates and cheap loans might be easing.
The news source said the average wholesale price for used cars rose 0.8 percent to $9,212 in June from May, says Tom Kontos, analyst for Adesa Auctions, a nationwide vehicle auctioneer.
May's average was up 0.8 percent from April, said USA Today. May and June were the first back-to-back monthly price increases in a year.
Despite that, used car prices were down 5.6 percent in June from a year ago.
According to USA Today, Art Spinella of CNW Marketing Research says used car prices were so depressed that buyers were refusing trade-in offers from dealers, preferring to sell on their own.
On the flip side, "used car buyers will pay a little more," he says.
"But not nearly as much as they were paying three years ago. There are still good deals out there."
Still, June's wholesale used car prices in almost every segment -- from compact cars to sport-utility vehicles -- were up from May.
Luxury and sports cars and compact pickups were the only segments down from a month earlier, reported the magazine.
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