agent Entrepreneur logo
MenuMENU
SearchSEARCH

Used-Car Prices Climb

February 6, 2012
3 min to read


LAS VEGAS—Used-car shoppers may want to consider making a purchase sooner rather than later because prices aren't expected to come down any time soon. In fact, they are going up.


The average price tag on previously owned vehicles is on track to rise 1.8 percent in 2012, with much of that increase expected in the second half of the year, according to the National Automobile Dealers Association.

Ad Loading...


It would mark the third-consecutive year that used-car prices—already running at or near record highs—will have risen. Prices jumped 3 percent in 2011 from the prior year, reported The Wall Street Journal.


"I have been looking at used-car ads for two weeks and can't get over the prices," said John Timmons of Canton, Mich. "Looks like I am just going to have to take the plunge and buy."


A midsize used car under five years old is projected to sell at an average price of $11,850 this year, according to the group. Two years ago, the same car would have sold for $10,325. The average price for a large, used pickup truck one to five years old is expected to be $19,050, compared with $17,050 two years ago.


"The prices you see out there now is the new normal for the market," said Jonathan Banks, executive automotive analyst at the National Automobile Dealers Association. "We don't see prices having a huge falloff, which is good when it comes to depreciation, but for consumers, it means they will really have to shop around."


For years, the used-car market was a haven for thrifty shoppers looking to buy a car at an affordable price. Sticker prices often fluctuated thanks to auto makers who would routinely flood dealer lots with more cars than the market could handle. Big incentives to spark sales added another level of pricing pressure as consumers who rushed to nab a deal also would trade in their vehicles, further saturating the market.

Ad Loading...


Then came the financial crisis in 2008. Consumers began holding on to their cars longer. Auto makers cut production, pinching new-vehicle shipments to rental-car companies, which in turn slowed the flow of vehicles into the used-car lots. Even repossessions, another source of used cars, have declined. The number of repossessed cars in 2011 was 1.3 million, down 32 percent from 2009, according to Manheim Consulting, which also tracks the used-car market.


Despite the shrinking supply, demand for previously owned vehicles increased as those consumers who were shopping during the recession bought used cars.


Not much has changed. The used-car supply remains strained as auto makers keep production and incentives in check.


"What we had in the past was abnormal," said Manheim Consulting chief economist Tom Webb, who publishes the Manheim Used Car Value Index. "There has been a permanent shift here, and unless you return to high incentives and overcapacity, we aren't going back."


Ford Motor Co. company executives, who addressed thousands of their own dealers Sunday, said they plan to enhance the certified-preowned program through such moves as extending some warranties.

Ad Loading...


"There will be a cadence of support at marketing, rate support for dealers and merchandising to the consumer to keep those certified-preowned customers in the Ford family," Ken Czubay, vice president of U.S. marketing and sales, said following the Ford dealer meeting. "It's good for the dealer and every department in the dealership. Programs like this continue to support the upward loop of residual value."

More Industry

Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Ad Loading...
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Ad Loading...