Used Car Prices Highest In Years

By Bruce Hagevik, NewsRadio 830 WCCO  

MINNEAPOLIS (WCCO) — Officials said Wednesday that used car prices are at their highest levels in about 16 years. The reason: Low supply and a growing demand.

People are keeping their cars longer, with the average now more than 10 years. The recession is one reason. Another is cars are built to last longer.  But now some people are forced into looking for another vehicle. 

“We’re seeing people that, you know, three to four years ago would have traded a car in with a thousand dollar repair just to not deal with the repair,” said Jay Peterson, manager of Miller Chevrolet in Rogers, Minn.

When people keep their cars longer, there are fewer trade-ins at dealerships. That means fewer used cars for sale on the lots. Dealers are paying an average of nearly $12,000 for each car purchased at auction. That, too, translates into higher prices for the consumer.

“Yeah, they’re over priced,” said a car shopper surveying a used car lot. “A lot of lots we’ve been to — you know — some of them will negotiate with you — some of them won’t.”

Some dealers are concerned about a bubble in the used car business. Most have purchased used vehicles at higher than historic prices and if the shortage ends they’ll be taking a loss on current inventory.

NewsRadio 830 WCCO’s Bruce Hagevik Reports

  • reality check

    Prime example of cause and effect. Cash 4 clunkers = no affordable cars

    • Tifany

      Couldnt agree more!

  • merks

    another unintended consequence of a government program that was a complete failure!

  • Jason

    Consumers have no $ cannot afford new car have to buy used. Big surprize here?

  • Sgt

    Bought a 2011 Prius the end of April . love it. but we kept our 95 Geo Prizm it has over 264K on it and it still gets 34 mpg.

  • V_for_Vendetta

    Another Owebama program that goes terribly wrong. Just another example of how government exacerbates a program despite having good intentions. If this is a prelude to what Owebama care will be then anyone remaining in the US (not me, already left) is going to be in for a rude awakening. Cash 4 Clunkers = No used cars because they poured acid over perfectly still good performing cars. Owebama is a traitor.

    • Cheers..

      Wow you left the country but still come back to minn websites and comment on news? Must be an electric life you’re living in your new country.

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