Small Used Car Prices Are Rising!
Saturday, May 31st, 2008
Small used car prices are rising due to the $4.00 per gallon gas prices. A reader of The Lazy Way To Buy And Sell Cars For Profit emailed me recently to tell me that he noticed a rise in small used car prices too. I wasn’t sure about that at the time he contacted me but I just read a couple articles confirming that.
One example of this is a used car dealer in Detroit I read about that is selling small fuel efficient cars for more than his asking price…and he sells these little cars fast too! He buys his used cars at wholesale dealer auctions, but the flip side is that the demand for these cars has caused a spike in prices on the wholesale level too.
According to the NADA (National Auto Dealers Association), the price of the average small used car has risen 2% in the last year with super small car prices going up 7.3%. Yet after doing a little research, I’m reading about little cars at wholesale car dealer auctions selling for $7000.00 that used to sell for only $5000.00.
J.D. Power and Associates says that the biggest increase is with the super small cars like Toyota’s Yaris and Chevy’s Aveo.
Okay, so NADA says small used car prices are rising only 2% to 7.3%? Hmmm, math has never been my strong point, but according to my calculations, a $5000.00 to $7000.00 bump equates to a 40% increase in prices! Whoa, for something that typically drops in price, that is some frickin serious appreciation man!
I remember a gas crunch in the late seventies where there was a big spike in the resale value of small fuel efficient cars. I wasn’t into buying and selling cars for profit then, but right before that gas crunch, I bought this rude little 2 cylinder (or was it 3 cylinder?) Honda 600 car that had a stick shift poking out of the dashboard. Anyway, I don’t remember now how much I made on that car, but I sold it for a big profit when everyone was freaking out about the high gas prices.
So that’s the dealio everyone. Small used car prices are rising and that means that if you can pick up a used little car CHEAP, which is the ONLY way I want you to buy according to The Lazy Way To Buy And Sell Cars For Profit, then you can rake in some serious cash right now.
I would love to know if you have noticed if small used car prices are rising in your area, so please feel free to post your comments in the box below. 
