Edmunds.com claims that shoppers are drawn more towards near-new used cars even if they have high prices as they look for better quality and value.
A latest Used Vehicle Market Report released by car shopping destination Edmunds.com. According to report, the average car sold in the US is getting younger and pricier.
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The report claims that the trend is now shifting tide in used car inventories. These are skewing more towards the newer off-lease vehicles and certified pre-owned (CPO) programs.
As per the Edmunds analysis the average used car prices hit a record high of $18,800 in the second quarter. This is up by 7.6 percent or $1300 per vehicle from the second quarter of 2014.
The average age of used cars sold in the second quarter of 2015 was 4.5 years. It is down from an average of 4.9 years the same time in 2014.
Now these newer used cars are obviously priced higher than older used cars. But people even then look for value in a car. Jessica Caldwell is Edmunds.com Director of Industry Analysis.
According to her, there is a growing inventory of newer used cars. And the prices on these vehicles seem to be more consumer-friendly then in the past.
Jessica also stated that the three year old used are actually selling for less than they did just one year ago. Plus vehicles eight years and over prices have increased by 11 percent on average over the last year.
Jessica said this basically shows a growing value proposition these days in newer used cars.
"Because there's a growing inventory of newer used cars, the prices on these vehicles seem to be more consumer-friendly than in the past," said Jessica.
"Three-year old used cars, for example, have more bells and whistles than older used cars, and they're actually selling for less than they did just one year ago. Compare that to vehicles aged eight and over, whose prices are up 11 percent or more, on average, over last year. There's undoubtedly a growing value proposition these days in newer used cars."
CPO sales have also underscored the popularity if near-new used vehicles. In the second quarter of 2015 dealers were successful in selling over 660,000 vehicles. They sold these cars through CPO programs which is the highest ever volume for a single quarter.