Cheap Used Cars Are Becoming Harder To Find

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Automotive Editor

Anthony Alaniz is an award-winning journalist living in southeast Michigan. His professional writing career spans nearly a decade, ranging from writing for the local newspaper to Autoweek and Motor1. When he's not writing about cars, he covers the horror film genre at Modernhorrors.com.

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, Automotive Editor - June 17, 2019

As used car transaction prices continue to rise.

In the automotive industry, there’s a lot of focus on new cars; however, an integral part of many dealerships is used cars. Average used-car transaction prices are climbing alongside new-car prices, too, and the likelihood of finding a cheap, affordable used car is becoming increasingly harder, according to a new report from Edmunds.

In its report (PDF), data show that over the last few years, three-year-old vehicles are seeing an increase in sales on the used market, which is only expected to continue. In 2019, there will be a “record number” of lease returns. These newer cars on dealership lots are what continue to drive up used car prices, which now average over $20,000 per transaction. That’s expensive, putting vehicles outside the price range of many shoppers. With three-year-old vehicles flooding the used market, sales of five-year-old and older vehicles are dropping because they’re getting much harder to find for customers.

2015 Chevrolet Cruze

With new and used car transaction prices continuing to rise, the influx of three-year-old vehicles on dealership used lots could assist those looking for a new car who cannot afford the higher transaction prices. However, according to the report, customers will want to flock to used cars that have some guarantee of reliability, such as certified pre-owned vehicles, which could help dealerships increase sales by increasing customer satisfaction. A CPO vehicle could offer customer more favorable pricing on a newer used vehicle packed with the latest tech and features with the “assurance of an automaker warranty.”

New car prices are continuing to rise. Pair that with automakers abandoning affordable entry-level vehicles like sedans and compact hatchbacks, and many people can no longer buy a new car. The used market is seeing similar

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, Automotive Editor

Anthony Alaniz is an award-winning journalist living in southeast Michigan. His professional writing career spans nearly a decade, ranging from writing for the local newspaper to Autoweek and Motor1. When he's not writing about cars, he covers the horror film genre at Modernhorrors.com.

Follow On: Twitter | Website

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