Mr. Keith said:
Everywhere you turn, the Wall Street Journal, the Mannheim Report, everybody is touting the fact that used car prices are increasing, which is true, but the underlying implication seems to be they are going to keep increasing. One report I read recently suggests otherwise. I think used car prices should drop in November and December.
The RVI Group out of Stamford, CT, in its 3rd Quarter 2009 newsletter on trends in the new and used car markets, reports that the used vehicle supply is up 25.3% from last year. That's going to contribute to prices staying soft for the remainder of the year (my words - not RVI's).
Sure, prices are rising against 2008 numbers, but that was a year with high gas prices and tight, tight, tight, tight consumer lending policies. Lending has eased up a bit and gas prices are down about 35% since 2008's peaks.
Right now you're going to find values in the small car market, as well as full-size vans. You're going to experience some sticker shock in the full-size pick and SUV markets. However, based on the tea leaves I'm reading, prices should drop in November and December when folks stop buying cars and focus on holiday spending.
OOYYO's comment:
It's true. New vehicles production is decreased due to economic crisis, so used cars are gaining plus values. Prices will drop maybe in United States and in Western Europe, but in Eastern Europe will continue to increase. Sad, but true..
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