Why used car prices are likely to stay high

May 25, 2012 12:00 AM

Those in the market for a used car may have noticed that prices are unusually high right now compared to previous years. While many drivers are able to stay on the road for longer thanks to keeping up with scheduled maintenance on their cars, there comes a time when a new vehicle has to be bought. But will the used car prices be coming down anytime soon?

According to USA Today, the answer is no. The reasons behind used car prices being so high are varied and complex, but much of it has to do with a simple shortage of used vehicles compared to previous years.

The news source reports Americans bought more new cars than they scrapped from 2000 to 2007. This meant more used cars were created when drivers traded their vehicles in. However, the recession caused a sharp downturn in new car sales. Now, several years removed from the beginning of the recession, used car dealers are facing a shortage of used vehicles, driving up prices.

Vehicle maintenance is playing a role in this trend as well. Due to the increased quality in today's vehicles, the average age of automobiles on the road has reached record heights. Rather than buy a new car, many are happy to sink money into regular maintenance in order to keep their current models on the road - and that's in turn decreasing the number of cars making their way to used lots.

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