SANTA MONICA, Calif. -

Edmunds.com recently discovered how much higher trade-in values for three-year-old vehicles were in October versus the same month in 2007.

The site calculated trade-in values for these three-year-old models were 10.3 percent higher. That rise, coupled with more attractive interest rates than the norm back in October 2007, prompted site analysts to advise consumers to seek a new-vehicle purchase.

Edmunds.com found interest rates on 60-month vehicle loans have declined from an average of 7.4 percent in October 2007 to 4.7 percent in October of this year.

“By taking advantage of these unusual market conditions, consumers who purchased cars three years ago may be able to get top dollar for their trade-in, lower their monthly payments and get a new car — all at the same time,” explained Edmunds.com analyst Ivan Drury.

Edmunds.com indicated that a consumer with a five-year, $25,000 vehicle loan at the average interest rate in October 2007 will spend $4,985 in interest. Meanwhile the current average rate would generate an interest charge of just $3,101. The site figured the interest rate drop would reduce the monthly payment from $499.76 to $468.35.

The site pointed out a consumer who qualifies for cut-rate financing would save even more.

At the 1.9-percent interest rate that is being widely offered by automakers today, Edmunds.com determined a qualified buyer with a $25,000 vehicle loan will spend just $1,226 in interest, bringing the monthly payment to $437.10 per month.

“It is a terrific time to sell a used car since they are in high demand right now,” stressed Edmunds.com analyst Joe Spina.

“That is especially true for cars that are three years old and newer since they often qualify for automakers’ certified pre-owned vehicle programs, making them quite valuable to dealers who can sell them for a premium after certifying them,” Spina added.

The following three-year old vehicles lead their segments in average True Market Value price increases since October of last year:

 Model  October 2010  October 2009  Change
 Chevrolet Suburban  $26,398  $20,538  28.5%
 BMW X5  $38,605  $31,084  24.2%
 Chevrolet Tahoe  $23,926  $19,771  21.0%
 Jeep Wrangler  $20,231  $17,096  18.3%
 Hummer H2  $33,570  $29,478  13.9%
 Toyota Tacoma  $18,269  $16,317  12.0%
 Hyundai Tucson  $13,608  $12,202  11.5%
 Dodge Dakota  $14,884  $13,469  10.5%
 GMC Canyon  $14,746  $13,553  8.8%
 Volvo V70  $21,309  $19,957  6.8%

The chart below lists year-over-year used-vehicle price increases by vehicle segment:

 Segment  October 2010  October 2009  Change
 Standard Compact  $9,473  $9,238  2.5%
 Premium Compact  $10,564  $10,338  2.2%
 Midsize  $13,767  $13,628  1.0%
 Standard Sport  $15,559  $15,152  2.7%
 Premium Sport  $34,088  $32,168  6.0%
 Fullsize  $14,650  $14,175  3.4%
 Standard Luxury  $22,875  $20,621  10.9%
 Premium Luxury  $29,192  $28,717  1.7%
 Compact Pickup  $16,271  $14,460  12.5%
 Fullsize Pickup  $20,339  $19,112  6.4%
 Mini SUV  $16,144  $14,612  10.5%
 Midsize SUV  $18,403  $17,988  2.3%
 Fullsize SUV  $24,531  $19,483  25.9%
 Luxury SUV  $29,371  $26,690  10.0%
 Minivan  $16,989  $15,784  7.6%
 Fullsize Van  $13,022  $12,140  7.3%