|
Used cars: Price drop may make them the best deal around
December 9, 1997
Web posted at: 12:01 a.m. EST (0501 GMT)DETROIT (CNN) -- Vivian and Stephen Pembroke were shopping around Motor City for a new ride, but they weren't willing to pay the price of a brand new car.
"I would rather just buy a car and not have a note and not have to worry about it," Stephen Pembroke said.
With the average price of new cars at around $20,000, late model used cars are proving to be some of the best deals on four wheels. And now is a good time to buy for consumers with inclinations similar to the Pembrokes.
Used car prices have fallen between 12 percent and 23 percent in the last three months, depending on location and the type of car, according to the Auto Dealers' Guide. That would mean, for example, a savings of $1,800 to $3,450 on a $15,000 vehicle.
The savings are partly due to expiring leases on vehicles.
"We have had a lot of influx of off-lease vehicles, which a lot of the franchise dealers get, and that has really loaded up our lots," said Russ Shelton, president of the Detroit Auto Dealers Association.
Another reason prices on used cars have dropped is the instability of prices at auctions, where dealers buy many of their used cars.
"We're eager to retail the cars because we're uncertain from week to week what they're worth," said Steve Rogers, a dealer at Snethkamp Car City.
Prices have varied by as much as $1,000 for identical vehicles at auctions, Rogers said.
While there are good deals out there now, the Consumer Federation of America warns buyers to be careful and recommends that consumers don't buy vehicles unless they have buyers guide stickers on them.
Buyers guide stickers will indicate if the car is backed by the dealer -- if it is an "as-is" purchase or if it comes with a warranty.
Detroit Bureau Chief Ed Garsten contributed to this report.
Related sites:
Note: Pages will open in a new browser window
- Yahoo! Used Car Guide Provided By Edmund's
- Used Cars On-Line: Advertised For Sale By Owner with Pictures
External sites are not endorsed by CNN Interactive.
Sound off on our message boards
You said it...
© 1997 Cable News Network, Inc.
All Rights Reserved.Terms under which this service is provided to you.