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Price Slide from Record Highs for Used Vehicles to ContinueBack

CarshoppersCar shoppers wary of blowing up their budget haven’t had a lot of good options over the last couple of years. A number of factors have come together to push new and used cars to record high prices in recent months. Fancy options and high technology have helped catapult the average new vehicle past $32,000 this year. Meanwhile, used-car prices have shot skyward as dealers struggled to find inventory, and more people looked toward used cars in an unsteady economy. Some relief may be in sight, however. The National Automobile Dealers Association, which tracked a 17 percent rise between 2007 and 2013, said prices nudged up another 2 percent so far this year to a record $16,560. The group expects a little give back between now and the end of the year, with used car prices finishing the year in about the same place they started the year. From there, NADA thinks prices will fall by about 8 percent by 2017. “We’re starting to see the improved sales years, some of those leases coming back, as well as people coming back into the market and looking for new cars,” said Steven Szakaly, NADA’s chief economist.

Source: Toledo Blade

Posted by Sue Robinson on 12/09/2014