Most late-model used cars had a slight decrease in overall price in January. However, sport utility vehicles (SUVs) and crossover prices continue to increase as their popularity and demand with consumers is on the rise. One of the biggest reasons for the spike in SUV/crossover sales is the low price of gas.
As fuel prices continue to drop to multi-year lows, today’s price below $2.00 a gallon, we can expect SUV values to continue to rise. It’s a simple case of supply and demand and car dealers are well aware how to play the game.
Cars.com took a look at the average price increases for all late-model used cars sold in the month of January 2016. The average price across all used cars sold was down -0.3 percent, or $80, too $23,953 per unit.
Interesting enough, out of the top 10 used cars with the greatest price increases, eight of them are SUVs or crossovers. The used car with the largest increase in price for January is actually a full-size van. The GMC Savana 2500 had a $918 (3.9%) price increase between January 1st and January 31st of 2016.
The next five used cars on the list all fall into the SUV/crossover segment and they all had an increase of anywhere from 1.5 to 2.9 percent within the month. The Hyundai Genesis showed up at number seven on the list with a gain of 1.5 percent ($437) and then the rest are more SUVs.
As long as fuel stays under the $2.00 per gallon mark experts say you can count on the prices of these vehicles to rise in the future. So if you’re in the market for a new SUV or crossover, you may want to make your move sooner than later.
Before Buying a Used Car
Please refer to my Used Car Buyer’s Guide for helpful advice and tips on how to buy a used car and avoid dealer scams.
Keep in mind when buying a used car you must do two things, check the used car’s title history using a service such as AutoCheck to make sure the vehicle has never been in a severe accident or has a branded title. If the title shows to be clean, have the vehicle inspected by an independent certified mechanic before signing on the dotted line. These two steps will greatly reduce the chance of you buying someone else’s problems.
If you’re considering the purchase of a pre-owned vehicle for yourself or a teen driver, I highly recommend using a free online referral services such as Ryde Shopper and Motor Trend. These services will tell you what others are paying for the vehicle you’re considering in your local area and which dealers give the greatest discounts.
Top 10 Used Car Price Increases for January 2016
|Rank||Make | Model||Average Price January 31st||Price Difference from January 1st||% Change|
|#1||GMC Savana 2500||$24,196||$918||3.9%|
|6||Ford Expedition EL||$38,214||$560||1.5%|