Latest Car Industry Debacle: Used Cars Rise In Price
The car industry is presenting its share of problems in the wake of the economic debacle… Again.
This time it is being said that with the shortage of cars currently in production that it’s going to mean that used cars are going to see a significant increase in sales price.
In 2008, due to the economic downfall leasing fell to an all time low. At that time, the three domestic automakers GM, Chrysler, and Ford all doubted the residual values of leased vehicles. This forced them to reduce or completely halt on the leasing business.
Since there won’t be late model cars coming off of three-year leases this will obviously make for a bare used car market.
Dealerships across the country are offering customers top dollar for used cars. Top dollars? That will depend on what you might consider top dollars. Some dealers are offering fairly close to the Kelley Blue Book Value.
New car prices will help keep used car prices under control. However, new car prices are stinging as well with an ever-tightening supply due to the Japanese earthquake. The biggest automakers that are falling prey to the impact of the earthquake are Toyota, Honda, Nissan, and Mazda. This would give Detroit, particularly GM, the current domestic sales leader to reign supreme again in car production and sales.
For now, say that you are not in the market for a new car and you save yourself a few bucks by purchasing a used car, here is a list of used cars that you should avoid compiled by Forbes.