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Report: Used car prices could soon drop

Posted on Tuesday, August 5, 2014 at 7:50:11 AM

New or used? This is one question that all vehicle buyers have to ask themselves, and coupled with affordable auto financing rates, the answer could determine how easy it is to handle the expenses.

Thankfully, a recent report from TrueCar and its analytics division, ALG, indicated that used car prices could start to decline as new car sales heat up. This is because many of those people buying new are trading in their older models as well, increasing inventory. 

"The continued strength of new-car sales is increasing the availability of high-quality used cars as shoppers continue to trade in their old vehicles," said Larry Dominique, president of ALG and executive vice president at TrueCar. "Additionally, because of the popularity of short 24- and 36-month leases, the drought of used-car supply is already starting to subside. As a result, we expect a steady decline in used-vehicle prices."

If you are interested in buying used, make sure you have all your bases covered beforehand. According to Edmunds.com, you should always test drive the vehicle and have it inspected before you make a deal. This can save you a lot of money on hidden repairs, and ensure that you are driving away with a good deal.