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Used-car prices rise nationwide

By Tara Baukus Mello · Bankrate.com
Thursday, November 8, 2012
Posted: 9 am ET

Used-car prices are expected to increase in the near future as a result of Superstorm Sandy, according to the National Automobile Dealers Association, or NADA. The group predicts that prices for used cars up to 8 years old will jump 0.5 percent to 1.5 percent nationally in December.

The increase is due to the loss of used cars that were currently for sale, as well as an increased demand to buy a used car by people whose cars were lost or damaged due to Sandy, including those cars for which an car insurance payout was made.

In particular, NADA expects that prices for large pickup trucks will be at the high end of the projected increase. Demand for those types of vehicles will be exceptionally high since they are typically used in the construction industry, and the overall available supply of pickups was smaller than normal before the storm. The higher used-car prices will mean consumers will need to be even more diligent when shopping for a car loan to ensure they get the best interest rate possible.

While the 0.5 percent to 1.5 percent increase is expected nationally, NADA noted that prices may be even higher in areas affected by Superstorm Sandy. Import and luxury brands are likely to see the highest increases since those car types are most popular in that region, according to Jonathan Banks, executive automotive analysts for NADA's Used Car Guide.

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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20 Comments
Natasha Lambert
November 19, 2012 at 11:24 am

Thanks for the information. I find that purchasing a used car is definitely the way to go especially in this time of financial uncertainty.I feel that you definitely have to do your homework before you go about purchasing a new vehicle though.After a few months I was lucky enough to find a used car dealership in West Chester that I was satisfied with. Finally to all of those looking for a deal just make sure you do your homework before hand. Good Luck!

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November 17, 2012 at 4:24 am

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Used Cars
November 16, 2012 at 6:11 am

The increase is due to the loss of used cars that were currently for sale, as well as an increased demand to buy a used car by people whose cars were lost or damaged due to Sandy, including those cars for which an car insurance payout was made. Bo's Autorama of Pacific, MO in Franklin County specializes in used cars, trucks and SUVs for sale. Special financing available for our pre-owned vehicles.

Dale
November 12, 2012 at 1:06 am

To Jeanette. First sorry for your loss. I'm not an attorney but I would suggest you consult one. The problem you're having is no one can determine if your uncle intended for you to have the vehicle after he passed. Either there wasn't a will or no will was filed. Obviously you're not on the title with your uncle so you have no ownership claim to the vehicle. The place to start is consult an attorney and obtain a copy of your uncle's death certificate.

Mike
November 11, 2012 at 11:49 pm

I have been a auto tech for more than 30 years and have my ase certification in auto repair. I have seen countless salvage cars and I would say that less than 5 percent are capable to be driven safely on the street. These vehicles look like new cars, and I mean some fool me until you look very close at the vehicle. You could have a multitude of problems arise with the electronics if a car goes under water and most of these vehicles will do nothing but empty your wallet trying to fix them. Also if they are involved in a collsion and you buy one more likely than not your saftey is in jeporty

randy
November 11, 2012 at 6:28 pm

The real reason used prices are going up is because DEMAND for used cars is going up, because real income is going DOWN, and new cars are getting MORE EXPENSIVE and credit is harder to get. Anybody that tries to blame a storm for nationwide climbing used car prices is either an idiot or they are trying to blame ANYTHING but our politicians for the millions of unemployed, underemployed, worsening economy and bleak future.

robert
November 11, 2012 at 3:36 pm

Now IF you believe this I certainly have a bridge I will sell YOU...before the price goes UP!!

Cindy
November 11, 2012 at 3:27 pm

My concern is these water damaged vehicles making it into the used car market. Heard on the radio that some of them are untraceable and that we must be diligent not to buy these damaged vehicles. CarFax is not always the answer to this.

Jeanette
November 11, 2012 at 2:52 pm

Dale, you sound like a knowledgeable person, and I have a problem no one I know can solve. I live in WV and an uncle of mine who lived in Ky left me everything he owned, including a vehicle which he drove himself to the hospital in, and subsequently he died there. Unfortunately, he did not have the will entered with the Court, so there is no Order of the court for me to have his vehicle, even though the hospital eventually released it to me. I have the title, but WV rules won't allow me to get a new title because there's no Court Order. There must be a way around this -- there's nothing owing on the vehicle, and I could use it. Do you know of any way to get this vehicle in my name?

scott
November 11, 2012 at 2:44 pm

WOW!!! .5 to 1.5% increase in cost.... that means you "might" pay 150.00 more for for a 10k car, 75.00 more for a 5k car. BIG DEAL! Must be a slow news day for you today. Skip Starbucks for a week and clean the change out of your couch and all will be right with the universe again. 2 minutes of my life I won't get back reading this article.