Edmunds.com Reports Certified Pre-Owned Programs Booming, and Boosting Used Car Prices
SANTA MONICA, Calif. -- October 20, 2010 -- Edmunds.com, the premier online resource for automotive information, estimated today that the average price paid in the U.S. for a used three- year-old vehicle in September 2010 was $18,832, up $1,471, or 8.5 percent, from September 2009.
"Used cars are in great demand and relatively short supply, so their prices are remarkably high," stated Edmunds.com Analyst Joe Spina. "Automakers understand that many traditional new car buyers are considering used cars, and in response are emphasizing their certified pre-owned car sales programs through which they can earn revenue on used car sales. This effort will keep used car prices high since CPO cars sell for a higher price than comparable non-certified used cars, raising the ceiling for the entire used car market."
Edmunds.com estimates that 18.5 percent of used cars bought at dealerships are certified pre-owned vehicles, compared to 13.8 percent this time last year.
"The fact that there is high demand for used cars is good news for consumers selling or trading in their cars, but not for buyers," commented Edmunds.com Senior Consumer Advice Editor Philip Reed. "We recommend that anyone looking at a lightly used car should also research prices and incentives on new cars, because the deals on some new cars make them even less expensive than used cars."
Edmunds.com lists new vehicles that may be less expensive to buy new compared with used at http://www.edmunds.com/car-news/new-vs-used-car-buying.html. Consumers who seek pricing information on specific vehicles can check the True Market Value® at http://www.edmunds.com/tmv.
The following are among the three-year old vehicles with the most movement in average True Market Value® price since September of last year:
|BMW 3 Series||$27,136||$23,806||14.00%|
|Ram Pickup 1500||$17,708||$16,264||8.90%|
The following chart sets forth average three-year-old vehicle True Market Value® prices by segment:
|Segment||September 2010||August 2010||September 2009|
|Premium Sport Car||$34,808||$35,522||$31,893|
|Premium Luxury Car||$30,040||$30,715||$28,568|
About Edmunds.com, Inc. (http://www.edmunds.com/about/)
Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.