Price Hikes for Used Cars

Used car volume rose about 3.1 percent in the month of February, which is huge considering that new car volume has been rapidly declining for months - even with enticing incentives. In fact, new car sales declined by 41.4 percent in February alone compared with a year ago.

The economy has forced consumers to be more responsible when it comes to any purchase, including when buying a new car says Chicago Used Cars. This mentality has slowly made used cars more appealing. The appeal is not coming with a cost, as demand also fuels higher price tags.

There are numerous factors driving used cars prices. First, Detroit Used Cars dealers  say a used car is believed to be more economical compared with a new car purchase. Additionally, there have been fewer used cars hitting the market since consumers are holding on to their cars longer in order to save cash. Even rental car agencies, which have been suffering from fewer travelers, are holding onto their cars. While dealers are getting trade ins, dealers like one used cars Boston dealer are also being forced to bid higher for cars at auctions due to the demand and shortage of inventory. In addition, dealers want user cars that they believe will sell. Unlike new car inventories, which force dealers to carry even the slowest selling models, dealers can pick and choose the used cars they want and still have healthy profit margins according to one used car dealer Kansas City.

Perhaps the most in demand used cars are certified used cars which Used Cars Los Angeles have seen growing demand for. In addition, late model pre-owned vehicles are quick to move off the lots. With all automakers offering excellent incentives on certified used vehicles, the used car craze is expected to continue. Toyota just recently introduced the first certified program specifically for used hybrids, which should no doubt help retain the value of pre-owned hybrid models.