The sudden drop in the value of used cars has many people wondering why used car prices have not come down with the rest of the market. We asked Alexia Quintanilla, Senior Editorial Director at Edmunds.com for her thoughts.
The last few months have been pretty crazy in the used car market. Used cars used to be a bargain, used cars in sacramento but for the last few months, many people have been noticing that used cars are actually pretty expensive. They’re the new used cars, the “trash cars,” as they were referred to in the old days.
The surge in demand for used cars in late 2007 has led to a drop in prices and this year, many dealers are asking what was a normal asking price in the $15,000 to $20,000 range for a car last year for just over $10,000. Now, some dealers are even asking for the full MSRP, including taxes and fees.
One dealer even wrote on his window “Bid with your checkbook” as a way of trying to sell cars that have been out of circulation for a few years and are no longer in the best shape.
What Is Driving The Used Car Price Surge?
It is not easy to say exactly what is driving the used car price surge, but there are a number of reasons.
One factor is that used cars tend to depreciate faster than new cars.
According to the most recent research on the used car market, the used car that depreciates the fastest is the one that was driven the least. These are the cars that were driven every day and have to be maintained. They are usually the least-used cars on the lot.
These cars also have the highest amount of maintenance costs and so they tend to depreciate faster than cars that have been driven less or which were put in the garage for the winter.
Another factor is that the used car market is in a supply shortage, while the new car market is still pretty good.
In fact, the shortage of used cars has led to a sharp increase in car prices, and used car prices have not gone down.
The shortage of used cars is a big problem for the used car market. A major reason that the used car market is used cars in sacramento so strong is that there are plenty of used cars. The used car industry is in the process of growing and new used car dealers are popping up all over the place.