Edmunds.com Highlights Significant Used-Vehicle Price Hikes
SANTA MONICA, Calif. — On average, the price of a three-year-old used car is 11.1 percent higher than it was last year, and General Motors has some of the most dramatic examples of this trend, according to Edmunds.com.
In fact, all types of used cars are up 5.5 percent. The normal trend is usually just 3.5 percent, the company pointed out.
"In terms of used-car pricing strength, GM has outpaced most other automakers, a remarkable feat considering that the brand recently emerged from bankruptcy," explained Jessica Caldwell, Edmunds.com senior analyst.
"Frugality is in fashion, and a used-car purchase looks and feels more thrifty," she added. "However, a number of people are researching used cars on our site, but then ultimately buying a new car, swayed by the limited used inventory available and the minimal different between the prices of lightly used cars and their heavily incentivized new counterparts."
GM vehicles have, on average, risen 7.8 percent in the past year, manly due to pricing power of GM's full-size trucks and SUVs, the company indicated.
For example, a three-year-old Chevy Silverado 1500 costs 23.7 percent more than it did this time last year, and the average three-year old Chevy Tahoe price is up 31.2 percent. Over the same time frame, the prices of used Hondas grew about 2.3 percent and Toyota's vehicles declined 0.9 percent.
In terms of used-car pricing strength, GM has outpaced most other automakers, a remarkable feat considering the brand recently emerged from bankruptcy," noted Joe Spina, Edmunds.com analyst. Consider, however, that even though Honda and Toyota used cars may not have GM's current momentum, the leading Japanese brands' resale values remain among the very best in the industry."
Some of GM's terminated models have also experienced significant hikes in prices, thanks in large part to a very competitive used-car marketplace, Edmunds.com pointed out.
A three-year-old Saturn Vue costs about 15.9 percent more than it did this time last year. The segment is up 11.3 percent. Used Pontiacs are also holding their value, a three-year old G6 costs about 5 percent more than it did last year. The prices of used Grand Prix and Solstice models are up slightly over their segment average increases, additionally.
The company pointed to the Hummer H2 and H2 SUT as the low gas prices. These models are up 18.4 percent and 17.2 percent, respectively, outpacing their segments.
"Given the dynamics of today's marketplace, it is worthwhile for a bargain-hunter to consider looking at new kids, which is some cases are less expensive to buy than used cars," noted Philip Reed, senior consumer advice editor for Edmunds.com.