Used Car Prices Blue Book

Used-Car Prices Set to Plunge for High-MPG Cars

As gas prices rose toward $4 a gallon, prices soared for used cars with high gas mileage. But now with pump  prices having fallen back, those used-car prices have backed off and could be down by 15% by the end of the year, according to analysts at Kelley Blue Book.

It turns out that Americans’ focus on high-mileage cars has been, typically, short-lived: Edmunds.com reports that June sales of hybrid and electric vehicles like the Toyota Prius (right) were down 17% below May sales, hitting the lowest level in more than six years.

The Kelley Blue Book web site reports that prices for fuel-efficient compacts and subcompacts dropped 1% to 2% in June — about in line with the overall used-car market. But analysts project that overall prices — which have been up sharply this year — will go down only about 3 to 5% more by year’s end, while small, high-MPG models will drop an average 15%.

Why the turnaround? Used-car prices rose this spring in reaction to both near-record gas prices and supply shortages resulting from the Japanese earthquake and tsunami. Those shortages hit high-MPG cars produced in Japan in particular; as a result, prices on fuel-efficient used cars jumped. Now, however, Toyota, Nissan and other Japanese automakers say they expect to resume full production by September — hence the falling price forecast as supply eases.

The Kelley Blue Book projections are based in part on past sales patterns. “If we look back at 2008, when gas prices hit $4 a gallon, we can foresee drops during the next few months,” says Alec Gutierrez, KBB’s manager of vehicle valuation. After gas prices peaked in 2008, used, fuel-efficient models dropped some 40% in price. However, there are significant differences now from 2008:

But even a drop of 15% is a good reason to wait patiently for your time if you're in the market for a high MPG car used, said Gutierrez.

Elsewhere in the market for high mileage Edmunds.

Hoping To Check Out Some Used Cars? Utah Has A Number Of Good ...

You have many friends who had essentially never dream of buying a car. Seriously, you can not imagine paying the kind of cash that new cars are in command. You had three cars in your life. All were owned, and each of them were great vehicles that eventually give you much beyond that for their money. You have done your research and you understand that, in terms of cars, Utah has plenty to choose from dealers.

How do you choose a good used car?

## Look at the cost and be willing to deal

If you are prepared to do a little leg work, you will likely be able to get a good deal on a used car. Know the current blue book values of vehicles. Know what vehicles are being offered at more than one dealership, and if you have the time to keep track, know which vehicles have been sitting on the lot for a while. The price on a used car is usually open to negotiation.

## Look at mileage

Recognize that a car that has logged more than 20K miles a year has been driven hard. This doesn’t mean that it’s automatically in bad shape; a car can be diligently maintained and driven 30,000 miles in a single year and be in significantly better shape than a car driven less than half of that without proper maintenance. That being said, mileage is unquestionably worth taking a look at.

## Be diligent in you homework

These days there is no shortage of neutral consumer material on the market. If you see a car that you know very little about, and the price tag seems good, return home and do some research on the internet. It’s possible that the price is set as it is for a reason, and that reason might not be good. In the end the more information you can gather the better.

## Limit yourself to reliable dealerships

If you don’t know quite a lot about cars, stay with reliable used car dealerships. If you’re buying a used vehicle via an advertisement in the paper or off of Craigslist, you risk getting ripped off. A dealership will have their reputation to protect and will be less likely to seek to sell you a lemon. Know too that if you like what you’ve heard about Mazda vehicles, for instance, that you’ll find a healthy selection of used Mazdas at a Mazda dealership where they will also offer exceptional Mazda parts/service.

If you’re looking for used cars, Utah has plenty of dealers from which to choose. If you are trying to get a sense for what vehicles are available across a wide variety of dealerships and what kind of ticket prices are being attached to them, it is worth your while to go online and Google “Used Cars Utah” and start taking notes on makes and models that interest you.

The used car book

The Used Car Book, 1996-1997

Readings in Applied Microeconomics, The Power of the Market

Kelley Blue Book Used Car Guide, Private Party, Trade-In, Retail Values, 1987-2001 Used Car and Truck, July-December 2002

Kiplinger's Personal Finance