There's good news for people looking to buy a used car. According to the NADA Used Car Guide, prices of pre-owned vehicles only increased by about 0.8 percent in February, which is well below the average month-to-month growth of 3 percent that has been consistent throughout the past two years.
Through January and February, used car prices only increased 0.4 percent. In 2011 and 2012, that number reached 4.4 and 2.4 percent, respectively.
"Price growth for used vehicles through early spring will be weaker than what is typically seen for the period," said Jonathan Banks, an auto analyst for the NADA Used Car Guide. "Consumers and businesses are beginning to react to the expiration of the 2 percent payroll tax holiday as well as political activity surrounding the federal budget sequester and debt ceiling extension."
Similarly, wholesale used-car prices dropped about 1.2 percent in February, and are expected to continue dropping in the upcoming months, Detroit News reports.
While the market may be right to invest in a used automobile, many drivers are instead trying to extend the lives of their current cars with superior vehicle maintenance and auto repair.