The Used Car Value Roller-Coaster

A few months ago, newspaper articles were written that constantly marveled at how on the used car market, the '97 Camry was in high demand even today. Unreasonable gas prices, people out of jobs and the Cash for Clunkers plan, all have kept used-car prices either unnaturally high or low from time to time. But with the economy recovering a bit, prices are coming back on an even keel, for both dealers and everyday people; for the first time in months, people can apply their common sense to evaluate used car value and actually have it turn out right.

This past year has turned the auto industry on its head, what with major century-old brands shutting shop or being sold to China. Chrysler has been sold to Fiat, and Saturn is being sold too. People who happen to own cars made by belly-up companies like Chrysler, Saturn or Pontiac, feel that this would be a great time to get these cars off their hands; they figure no one can really predict what kinds of image or resale value these brands will carry from now on now that the companies have either been sold or closed. Used car values on Saturn Auras hover at thousands of dollars under the recommended price on Edmunds'.

Five years ago, when John Kerry was running against George Bush, he used the rising price of oil as a great scare tactic against the Bush administration. Oil prices were headed to $4, the market for SUVs collapsed, and new technology such as the hybrid Prius and Insight really took off, even if they offered lower performance, fewer features and higher price tags. Well, gas prices seem to be settling to levels we're more used to, and all those green car buyers want to trade up from their five-year-old hybrids. If you go looking for one of these, there is great used car value to be had out there. An additional market factor that pushes prices down further is the way the 2010 model hybrid cars are a couple thousand dollars cheaper than hybrids were last year. Still, hybrid cars are yet far from being great value. They are only reasonably-priced now, this year; a 2007 model Civic hybrid for example, now sells at about $16,000 - undercutting Edmunds'.

The market for SUVs was given up for dead not long ago when gas prices were relentlessly high. America's involvement with the SUV is showing signs of life again. If you have an Audi all-wheel-drive in mind, it would be best to not go for it in the winter when everyone is looking at such a purchase. Used car values are far more likely to be reasonable today than before; with the Internet breaking to the public what used to be secret used car deals, almost anyone can look up the best price instantly on a car. The information available to consumers is slowly but surely, pushing down retail values on used cars.