Ricky Beggs, managing editor of Black Book, just reported that all 10 used car segments have shown increased wholesale values for the second time in the last three weeks. And as a whole, cars have been up 6 weeks in a row and trucks have been up 8 in a row.
What does this mean for new car buyer? Quite simply, your trade is worth more today than it was two months ago and you likely have additional room to negotiate a better deal on your next new car.
BB's findings could be a sign of an overall strengthening across both the new and used car markets, but Beggs did not speculate. I think it is the result of more value conscious shoppers eschewing the premium on the purchase price of a new car and turning to the perceived value of late model pre-owned.
Yet many 2008 used cars now cost almost as much to buy as their 2009 counterparts. When that is the case, why on earth would you buy the 08 model?
Additionally, there are a large number of buyers who just do not want to put up with the headache associated with purchasing a used car no matter what the cost. In their minds, the additional security and warranty is worth the additional investment in a new car.
Lastly, it is important to note, there continue to be massive rebates and incentives available on new cars that are just not there for used. $4,000 cash back or 0% financing on 09 Chevy Avalanches and $2,000 cash or 1.9% financing on 2010 Toyota Tundras are just two examples.
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