In new reports on the burgeoning values of pre-owned cars, the Kelley Blue Book company is forecasting that inflated values will tend to stay that way for a while. We’ve reported on the incredible utility of Kelley’s KBB.com web site for finding fair trade values and more information on a specific car or model year. Now, Kelley’s Blue Book Market Report for August 2011 is taking an oracular approach and predicting what is likely to happen within today’s interesting auto market.
Kelley Blue Book values in an August 11 press release show how average used car values have boomed over the past three years, going from just over $15,000 in 2008 to over $23,000 this month. That’s a total increase to the tune of over 50%, and according to Kelley, the same initial factors that made used car values jump will keep them holding resale values into 2012 and beyond.
Although many initially believed that Japanese earthquakes and subsequent supply issues were the main reason for low new car sales, analysts are now positing that the gap in new car sales, which helps push up values for used cars, also has a lot to do with simple demand. As Americans, significantly affected by corporate downsizing, tighter lending, and stagnating wages, assess their own budgets, many people are simply trying to save a buck. That makes pre-owned models with lower sale prices more desirable than new ones. And that idea is likely to remain prominent for a long time.
The change in pre-owned car models is good for sellers. It means that the clunker in your garage might be worth a lot more than it used to be. It’s not such good news for those who have been trying to ride out the price bubble and put off buying a car with more life in it. Used car buyers will need to be particularly adept at the art of the deal to make the most of this new market reality. Use good market pricing and the best financing strategies to make sure you don’t pay more than you need to when you buy your next new or used car.