“Used vehicle values up thanks to short supply” |
| Used vehicle values up thanks to short supply Posted: 17 Jan 2011 09:34 AM PST  wxin-used-vehicle-values-up-thanks-01172011 Indianapolis — The prices of some used cars have risen to laughable levels. For proof, one need look no further than a 14-year-old Chevrolet Lumina on the lot of Andy Mohr Chevrolet in Plainfield.It's not just that the odometer reads 156,706 miles (two-thirds the distance to the moon). Vast sheets of white paint have peeled from its hood, roof and fenders. Corrosion on the leading edge of its nose forms a "rustache" of sorts. And for this high-mileage, balding beater, Mohr wants a tony $3,000 ($2,995 in dealer-speak). Sure, it needs a paint job, the dealer ad noted, but it "runs great and the transmission shifts great." An extreme case, perhaps, but used prices broadly have been climbing: Last month, the average used-car transaction was for $19,345 vs. $16,586 a year earlier, according to Edmunds.com. Last year, used-vehicle prices generally were 10% to 15% higher than in 2009. The upside for consumers hunting for a new car is that their trade-ins may be worth more. For dealers, at least for those willing to reflect higher values in a trade allowance, this trend could jump-start new-car sales that have stalled when the economy crashed in late 2008. Higher trade-in equity will be among the key drivers "that will sustain new vehicle sales increases in future months," National Automobile Dealers Association economist Paul Taylor declared last month. "Cars are holding better value, which is good for consumers," said Bill Skillman, a principal of the city's Ray Skillman chain of new-car dealers. Click here to read the full story from the Indianapolis Business Journal. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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