Want a Used 'Econobox'? Better Get in Line

Washington DC July 16, 2008; The AIADA newsletter reported that sustained high gasoline prices are pushing more drivers out of their SUVs and into what were once called "econoboxes."

But because economy models haven't been big sellers for the past few years, car makers have built relatively few of them. The resulting tight supply and strong demand have driven up prices.

In May and June, the 10 used cars with the fastest-rising prices included the Hyundai Elantra, up almost 9 percent from the year-earlier period, and the Kia Spectra, up nearly 8 percent. According to the Wall Street Journal, just a few years ago, the list was dominated by larger, more luxurious cars like the Lexus LS Series.

Some used cars' prices are even approaching the levels of new models. The average 2006 Honda Civic costs $16,118, or 86 percent of what a new 2008 model costs. The long-sought-after Toyota Prius costs 87 percent of the new-model price.

Typically, three-year-old used cars cost between 50 and 60 percent of their new equivalents' prices. "This market is always cyclical," says Dan Crowe, manager of Honda's certified used-car business. "Right now, though, we're in the right place with the right product," he says.

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