Monday, September 13, 2010

Higher Prices for Used Cars to Continue into 2011

The U.S. recession is creating a dramatic domino effect in the used auto industry. Lenders are still feeling stingy. This, in turn, causes owners to hold onto their old models longer. This results in fewer new car sales and late-model trade-ins available at dealerships. It also means that those who do need to purchase a vehicle are more likely to search for a used car. That demand, coupled with decreased supply, is resulting in soaring used vehicle prices. (I guess that old rule about supply and demand is true!) If the predictions are true and new car sales are low again in 2011; this trend will continue.

If you are considering selling your vehicle, give potential buyers the peace of mind they’re looking for by selling before your extended warranty expires. Any warranty still intact will put a buyer at ease and add substantial dollars to the value of your vehicle. You also might want to be certain that any warranty you purchase is transferable, like all of Auto Service Warranty’s contracts.