This.

Used vehicles with a short term loan/low payments/low cash purchase price are looking a lot more attractive than new vehicles at ~8% interest for 60 months. The supply of used vehicles overall is even shorter considering that decent used rides are getting blown up in the cash-for-clunkers insanity. Short supply = higher price.

 

Between Cash for clunkers and limited production by auto manufacturers the supply has shrunk considerably over the last 6 months. The auto Co's have not ramped up production yet waiting on pent up demand for vehicles to occur in the near future. Later half 2010 and early 2011 there will be BIG quarters for all of the Manufacturers.

Think about it this way. There is a burn rate on vehicles on the road today. Every day we drive them and it's a matter of time before they wear out or we just get tired of driving them and want something else. Auto manufacturers try to time the production of vehicles to this burn rate. They blew it in 2007-2008 and sold too many. Also bad economy kicked in. Now they are waiting for those vehicles to leave the market and for demand to pick back up again.

 

wow, its true.

when i got mine in july nada was $24,250...now nada is $26,250.

btw, kbb is worthless. nada tracks value based off of what actual vehicles sell for and nada is what banks use to assess value. its fairly accurate

 

Yeah wouln't you go by KBB they're pretty much the masters...IMO.

 

Good luck if you try to sell it though, on a serious note.

 

It is a highly unusual scenario. Hardly ever do you see prices that increase on a something that depreciates as quickly as a car or truck. One could say it's a perfect storm which is the opposite of why prices took a major dump last summer, too many off-lease trades/turn-ins, large inventories, no available credit for financing and 4.10/gal gas.