Get Yourself A Great Deal On A Terrific Used Car
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Written by Steve R. Lowry
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Tuesday, 17 February 2009 |
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After four years of acceleration, used-car prices are sputtering, because of slackening demand and a glut of vehicles returning to dealers from expiring leases. That gives clever automobile shoppers the rare chance to buy two- or three-year-old cars at a lower price than they'd have paid for the same model a year ago. In the past 12 months, used-car prices have fallen by 2%, on average, after rising at about a 5% annual clip since 1992. "Falling prices today are most notable at the high and low ends--luxury cars and subcompacts," says Pete Cansler, director of production at Chrome Data Corp. in Portland, Ore., which tracks new- and used-car price data.
As an example, Cansler points to the luxury 1995 Infiniti Q45 (pictured at right), selling for $31,525 on average this year. A year earlier, a two-year-old Q45 went for $31,925. Thus the '95 model has been going for $400 less, even though its $52,880 original list price was nearly $2,000 higher than its 1994 equivalent.
To find similar bargains, car experts suggest the following:
Investigate used cars whose new-car siblings now carry hefty rebates. "When the manufacturer is offering, say, a $1,000 rebate, some portion of that is reflected in lower prices for used cars of the same model," says publisher Doug Aiken of the Automotive Lease Guide, which estimates future used-car prices for leasing companies. That's because, with the new car now cheaper, more buyers will choose it than the same model used car; with demand down, the used-car price falls. For a list of current rebates, consult the industry trade weekly Automotive News, available in many libraries. Or you can check on Websites such as http://www.Intelli Choice.com and Edmunds.com. Among the biggest rebates recently for high-volume models: $3,000 on all 1997 Lincolns and $1,500 on the Buick Park Avenue and Chrysler's top-end Concorde and Dodge Intrepid.
Shop around for dealers whose used-car prices are below the national average. Check out the Kelley Blue Book or the NADA [National Automobile Dealers Association] Official Used-Car Guide for national averages, then shop around for dealers who can do better. You'll find the best deals on vehicles with large numbers of lease-ending returns this year, such as the Ford Taurus and Explorer. At the no-haggle, used-car superstore CarMax in Norcross, Ga., the Infiniti Q45 pictured above was selling for $28,995--8% below the national retail average of $31,525. And Money research shows that nearby dealers will often underbid the superstores by $100 or more, although individual dealers typically have a smaller selection of cars than their superstore rivals.
Buy a used car that's out of season. For example, shop now for a four-wheel-drive sport utility or pickup in a northern climate. When the first snow falls, prices can rise 5% to 10%, says Patricia Erney, managing editor of the NADA guide. Likewise, buy a convertible in winter. Come spring, its price will likely bloom.
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Last Updated ( Tuesday, 17 February 2009 )
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