Compact Cars Are the Most Profitable Used Cars This Year
If you are looking to buy a used car, you might want to consider compactness. While used car prices have generally risen, prices for used compact and subcompact cars have declined, according to the Edmunds report.
According to the used car market report, in the first quarter of 2016, prices for small cars decreased by 1.5% and prices for small cars – by 5.7%. This is quite a big difference compared to the total used car value, which increased by 3.2 percent. Jessica Caldwell, director of industry analysis, said the trend is related to gas prices :
Low gasoline prices and light credit make SUVs – and their higher prices – more attractive to used car buyers, but they also create a great opportunity for small car buyers who now have more choices at lower prices. If you are in the business of buying used cars now and your main goal is to get a big discount, it would be wise to choose a compact or subcompact car.
In contrast, prices for almost all other types of cars have gone up, as you can see in the chart above. Small trucks grew the most in price at 11.8%, while midsize SUVs and large vehicles were not far behind. In short, cheaper gasoline has led to more demand for larger cars, which means you can probably get a better deal for a smaller used car. For more information, check out Edmunds’ full report at the link below.
Used Car Quarterly Report | Edmunds.com