Kelley Blue Book is warning those thinking about entering the used car market that prices are a rising. The venerable car price guide said that buyers will pay up to 5 percent more in March than they would have paid at the year’s dawn.
The used car market has had an odd start in 2012. Normally, buyers sit on the used-car-buying sidelines the first two or three months of the year as they lick their holiday-shopping wounds. This leads to prices remaining flat. However, prices this year are already nudging their ways upwards before as the first month of 2012 comes to a close. Passenger cars have seen the most dramatic of jumps with average costs increasing by $107, $86 and $85 for mid-sized, hybrid and full-sized vehicles respectively. Fortunately, interest rates for subprime auto financing have remained (relatively) low.
KBB and other industry observers believe this trend will continue for the year’s entirety due to the ongoing aging of the cars Americans are driving, which will, at some point, increase demand, which will translate to higher prices across the board.