Used Car Prices Dropping Thanks to New Car Sales

November 13th, 2014 by

If you’re in the market for a used car, now might be the time to stop by Buy Here Pay Here car lots in Ohio!

According to reports from Manheim and CarGurus, used car prices have been falling for five straight months, and show no sign of slowing down as we move into winter, which typically means less buyer interest.

But with prices dropping, buying a car during winter might be the best time. The used car price trends from CarGurus show prices are down an overall 5% when compared to this time in 2013.

Of that drop, 3% has occurred in just the past 90 days, signaling buyers that deals on the best used cars are likely easier to get now than in the hot months of summer.

Who Should Be Looking to Buy Now?

While you would think a drop in used car prices would mean it’s the time to buy for everybody, the opposite is true for certain types of vehicles that have actually seen a rise in average price:

  • Used Pickup Trucks: 4.8% increase from 2013
  • Used Convertibles: 6.6% increase from 2013
  • Used Vans: 18.3% increase from 2013

Most car brands have seen a dip in price compared with 2013, especially those that are no longer in production. Here a few to look out for:

  • Used Pontiac prices: Down 8.69%
  • Used Mercury prices: Down 17.72%
  • Used Saturn prices: Down 14.98%

Conventional wisdom will tell you that buying an out-of-production brand a mistake, but those hunting for a deal could strike gold on the right used car this winter.

Economy cars are seeing the biggest dip, as new car leases run out and fill dealership lots across the country. All of the major brands, including major Japanese brands Toyota, Nissan, and Honda, are seeing a drop.

As of writing this, the only Japanese brand that is showing strength in the used car market is Subaru, which has a small yet loyal U.S. following.

The Bottom Line on Used Car Prices

There’s no telling what the market will do over the next few months, but the most leases that come back to dealerships in 2015, the more used car prices will continue to drop. If you’re on the fence, it’s wise to start looking now for the best deals this year.