Best 2013 Used Cars – Image via media.ed.edmunds-media.com
Best 2013 Used Cars – Over the last five years, some people have wanted a small used low car like the Chevrolet Cruze or Ford Focus.
Compact cars and subcompacts are in many dealerships for weeks because of the SUV craze in the US.
Earlier this year, dealers and industry analysts began to see changes, with sales and prices for compact cars and subcompacts used increasing after falling every year since 2013. That’s partly due to rising gas prices, stagnant middle-class wages and transactions that are still too good to miss .
Best 2013 Used Cars
To date, lower demand has decreased car prices, but especially for smaller ones, reaching their lowest point in 2017 because the cost of their closest competitor for basic transport – small SUVs – is on the rise. At the beginning of this year, analysts and dealers said that the spread between small SUVs and cars is so great that cars are becoming more attractive. Also, rising gasoline prices make buyers with tight budgets from SUVs and other segments to smaller, cheaper cars.
At Paddock Chevrolet in Kenmore, New York, near Buffalo, dealers pay $ 10,200 to $ 10,500 for Cruzes 3 years early in the year. Now pay $ 11,500, says owner Duane Paddock. “We found it surprising,” he said. “Usually the price keeps going down, it’s definitely harder to find a lower-priced vehicle.”
In the first quarter of 2013, the average three year old compact car sold for $ 14,328, according to Edmunds.com auto pricing website. In the same period of 2017, the selling price dropped nearly 10 percent to $ 12,958. But in the first quarter of this year it rose to $ 13,464.
Black Book, the price of automobiles and automotive analysis companies, reported that sales of compact cars and subcompacts used each rose 5 percent in the first quarter from a year earlier.
“The compact car has been beaten in value,” said Anil Goyal, executive vice president of Black Book, “They are very attractive to value buyers.”
Five years ago, the cars were about 50 percent of new US car sales. But trucks and SUVs have since risen to 67 percent.
Ivan Drury, senior analyst at Edmunds, believes gas prices are a big part of the equation. At the end of March, the national average price per gallon of regular rose to $ 2.61, 33 cents higher than the same time last year. It continued to jump during the second half, with prices now hovering around $ 2.85, 58 cents more than a year ago, according to AAA. Last week the OPEC cartel countries agreed to pump more crude oil, a move that should contain recent price increases.
Used car buyers are usually more price sensitive, especially if gasoline takes a bigger bite out of their budget, and that triggers an increase in demand for smaller cars, Drury said.
The average wholesale value (what a dealer’s paid in a used vehicle auction) of a 3 year old compact car is about $ 9,800, according to Goyal. But the average compact crossover SUV is $ 13,250. “There’s a big difference here,” he said.
So far, there has been no similar change in the sales of new small cars or new or used midsize cars as the boom of trucks and SUVs continues, Drury said. He did not see the new vehicle market change even with gas reaching $ 3 per gallon in most countries. But medium-sized cars used could see prices and demand rise when second-quarter data came out, he said.
Glenn Mears, owner of five dealers around Canton, Ohio, including Honda, Nissan, Ford, and Fiat Chrysler, said they had trouble finding a compact, but not medium-sized car. “You can find (medium-sized Honda) Approvals throughout the day,” he said. “You can not find (solid) Cnn now.”
Drury sees a gradual increase in used car prices, but nothing dramatic unless gasoline reaches $ 4 per gallon. He based his prediction on consumer behavior during the previous gas price hike.
Stagnant wages can also be a factor. Hourly payments grew slower than in the past when the unemployment rate was low, about 4 percent. But now, rising inflation has eroded some of its benefits. In May, hourly average wages rose 2.7 percent from a year earlier, but inflation increased slightly higher at 2.8 percent.
“Everything combined together might tell a whole bunch of stories,” Mears said.
Economic writer Christopher Rugaber contributed from Washington, D.C.