Used Car Prices Dip Due to Employee Pricing Discounts

Washington DC August 11, 2005; The AIADA newsletter reported that the popularity of employee pricing deals is causing used car prices, including some luxury models and SUVs -- to the lowest levels in at least two years, reports The Wall Street Journal. For consumers, the oversupply of used vehicles translates to savings of anywhere from a couple of hundred dollars to as much as a few thousand dollars off used-vehicle prices, compared with a similar vehicle a few months ago. Generally speaking, buyers should expect used-car prices to decrease by the amount of incentive being offered on the new version, says John Symes, president of Symes Automotive Group in Pasadena, Calif. According to J.D. Power & Associates’ Power Information Network, brands whose average used-car transaction price at a new-vehicle dealership declined in July from June include Saab, Honda, Acura, and Suzuki.