Now Is the Good Time Considering To Sell Your Used-Car

Many older models are worth more now than a year ago. Used vehicle prices are at 16-year highs, making it a good a time as there’s been in a while to sell your car.

There are a combination of factors affecting supply and demand. Here are a few things to keep in mind if you are selling, as well as some savvy moves for landing your next vehicle in today’s complicated car market.

• People are holding on to their cars and driving them about a year longer than they did prior to the recession and so the average car on the road is now pegged at 10.6 years.

• New car sales have been down over the past few years resulting in fewer late-model used cars available for resale.

• During the financial crisis, it got harder to get credit and so leasing went down. Leased cars ultimately end up being used cars.

• Rental car companies have not been buying and turning over new cars.

• Dealers are buying used vehicles as placeholders because new models of some small cars are also in short supply due to the tragic events in Japan.

All this adds up to a net decrease in supply and fewer used cars on lots. Though used car prices are up across the board but with gas prices still high, smaller vehicles and hybrids are in particular demand.

According to the Automotive Lease Group; there’s a definite trend toward downsizing to a vehicle that saves money at the pump. In fact, for every $1 increase in the price per gallon of gas, the value of used compact cars rises 8% to 12% on average.

That means that for a small used vehicle that was worth $10,000 last year; the equivalent car today is worth roughly $11,000.

The expectation is that used car prices will level off in the coming months and may drop in 2012 as more used vehicles come on the market.

Auto industry expert David Kiley says; the best possible move you could make right now is to sell or trade in a small, full efficient car if you have one to sell. You’ll get top dollar for that. Then, buy if this is your need; a minivan, SUV or pick-up truck — vehicles that are still getting generous incentives.