The bad news for cash-strapped shoppers is that prices for late-model used cars, which had begun to decline after reaching historic highs the last two years, are on the upswing again. To blame this time around is October’s Superstorm Sandy that left tens of thousands of vehicles destroyed.
The National Automobile Dealers Association (NADA) predicts prices for used vehicles will jump from 0.5% to 1.5% by year’s end, and could go even higher for those living in areas ravaged by the storm. “The loss of used-vehicle supply and the increase in replacement demand after Sandy will have the greatest impact on used-vehicle prices in December,” says Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. “Regionally, the concentrated damage that occurred in New Jersey and New York mean that used-vehicle prices, particularly for import and luxury cars, will most likely increase beyond NADA’s national level expectations.”
The good news is there are still plenty of good deals to be found among late-model used vehicles. The key is to find a car or truck that performs well and has a good record for reliability, but through no fault of its own carries a lower resale value – which makes it more affordable in the used-car market – than other models in its class.
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