Used Car Prices Falling Back To Normal As Leased Cars Returned

Washington DC October 7, 2014; The AIADA reported that according to the Detroit News it's a good time to buy a used car, because millions of previously owned cars and trucks are flooding the market as leases expire and customers look to upgrade.

Prices have fallen since the start of the summer, and inventories are climbing. It's a delayed reaction to a recovering auto industry: When credit loosened two or three years ago, it became easier to lease a car. Now those leases are coming to an end, and car buyers are flocking to dealerships to turn in their now-used vehicles. While analysts predict supply levels are still years away from pre-recession numbers, they say the used-car market should continue to rebound through the remainder of the year and into 2015.

The average used car sold at a franchised auto dealership for $10,963 in September, down about 2.1 percent from a year ago, according to CNW Research. Although the September average is 0.7 percent higher than August, prices had fallen every month before that since May.

Georgia-based Manheim Inc., which tracks the used-car market, says prices are falling back to normal levels after a long period of "exceptionally strong pricing."

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