Small used car prices are rising due to the $4.00 per gallon gas prices. A reader of The Lazy Way To Buy And Sell Cars For Profit emailed me recently to tell me that he noticed a rise in small used car prices too.
Its true, and one example of this is a used car dealer in Detroit I read about that is selling small fuel efficient cars for more than his asking price…and he sells these little cars fast too! He buys his used cars at wholesale dealer auctions, but the flip side is that the demand for these cars has caused a spike in prices on the wholesale level too.
According to the NADA (National Auto Dealers Association), the price of the average small used car has risen 2% in the last year with super small car prices going up 7.3%. Yet after doing a little research, I’m reading about little cars at wholesale car dealer auctions selling for $7000.00 that used to sell for only $5000.00.
J.D. Power and Associates says that the biggest increase is with the super small cars like Toyota’s Yaris and Chevy’s Aveo.
Okay, so NADA says small used car prices are rising only 2% to 7.3%? Hmmm, math has never been my strong point, but according to my calculations, a $5000.00 to $7000.00 bump equates to a 40% increase in prices! Whoa, for something that typically drops in price, that is some serious appreciation!
I remember a gas prices spiking in the late seventies and there was a big rise in the resale value of small fuel efficient cars then too. I wasn’t into buying and selling cars for profit then, but right before that gas crunch, I bought this rude little 2 cylinder (or was it 3 cylinder?) Honda 600 car that had a stick shift poking out of the dashboard. Anyway, I don’t remember now how much I made on that car, but I sold it for a big profit because everyone was freaking out about the high gas prices.
So that’s the dealio. Small used car prices are rising and that means that if you can pick up a used little car CHEAP, which is the ONLY way I want you to buy (according to what I teach), then you can rake in some serious cash right now.
I would love to know if you’ve noticed if small used car prices are rising in your area, so please feel free to post your comments in the box below.
Steve
Pingback: Larry
Pingback: Harrison
Yeah, crazy high gas prices will definetly raise the price of little cars.
Well I sell cars for a living and as of nov 2009… good luck finding a used car in the malibu size and up (the cobalts and aveos are just too small, you get comparable mileage in the larger safer more quality built midsized and up) for less than $12k were talking 2 years old and newer with low miles under 25k. used to be a 10k range easy but no more. nOw once this Afganistan War (say it with me WAR) gets going (remember he just sent 30k more troops) by mid spring w’ell be looking @ $4.25 a gallon nation wide, then your 10k bean can subcompacts will be selling for $12k and those $12k nice good on gas mid sized ones will run $15k. So enjoy it now cause 2010 were gonna get it stuck to us just like 2008 and then some on fuel prices.