Used Prices Set to Fall; KBB Editors Name 10 Best Used Cars Under 8K
With used prices expected to continue to decline after holding unusually high rates for the past few years, dealers may have more options when it comes to stocking used vehicles that would be more affordable to consumers.
Kelley Blue Book released a list of 10 Best Used Cars under $8,000 — with a variety of models from Japanese, Domestic, Korean and European manufacturers for buyers to choose from.
KBB.com officials contend that with "Americans looking to stretch their hard-earned dollars as far as they can go, many people find themselves checking out the used-car market instead of shopping new."
The list touts some surprising finds: for example, the 2004 Mustang GT with a Kelley Blue Book Retail Value of $7,328, and the 2005 Volvo S60 with a Kelley Blue Book Retail Value of $7,390
Jack Nerad, executive editorial director for KBB.com, commented on how the site chose the cars that made the cut, which includes the 2004 Honda Odyssey and the 2003 Acura TL.
"To come up with this handy list of top used cars, first we compiled all the used cars from 2003 and newer with a Kelley Blue Book Suggested Retail Value of less than $8,000 as of January 2013," Nerad said.
"Then we went through the list and handpicked the 10 standouts with the most appealing mixes of reliability and desirability. The vehicles on our short list offer incredible value for today's budget-conscious car shopper," he continued.
To see KBB.com's full list of the 10 Best Used Cars Under $8,000 for 2013, see here.
Used Prices on the Way Down
And uses prices may fall even lower in the near future, due to an increased supply of used vehicles, says CNW Research president Art Spinella.
Spinella said used-vehicle prices remain stagnant on both a retail and wholesale level for the rest of this month.
Spinella contributed a part of the "price problem" to the growing supply of vehicles.
"CNW estimates that the days’ supply for January will be around 49.9 days, compared to 44.2 days in January of last year — a 13-percent increase," Spinella said in the lastest Automotive Retail Summary from CNW.
The days’ supply for trucks is running around 48.6 days while passenger cars are at 51.2 days.
And in mid-January, Ricky Beggs, managing editor of Black Book, said that the primary adjustments his team was observing in the lanes were decreases in value. In fact, 13 of the 24 segments Black Book tracks had 40 percent or more of their vehicles showing price decreases during the week of Jan. 13.
But he thinks the stagnant prices in the lanes are not cause for worry.
"Most years the activity and values show increases for this time of the year. Even though that is not the case so far this year, we do not feel this is a cause of concern or an indication of a year-long weak used-car market," he said.
"The strength in value retention during December was above the norm, creating a stronger starting point than normal and giving us a chance to ease into the new year. To see if this trend continues, tune back in next week for the latest update," Beggs concluded.