With drivers looking to save money on their vehicle purchase, the prices of used cars are soaring, according to MSNBC.
A variety of factors are contributing to the major increase in used car prices, including the Japanese earthquake, high gas prices and the slow economic recovery, the news source reports. Edmunds claims that used car prices are currently 30 percent higher than they were just one year prior – a massive swing not typically seen.
Anecdotal evidence also supports these claims. Nearly all dealers that the news source interviewed said that they were paying well above Kelley Blue Book value for vehicles purchased at auction – and that's before the dealer marks up the car further so that they can turn a profit.
"This is my 37th year doing this, and I've never seen it like this," said Gerry McCann, sales manager of Duncan Automotive in Blacksburg, Virginia.
On the other hand, the high price of used cars means that dealers are also paying an exorbitant amount for trade-ins. Now is a good time for drivers considering trading their vehicle to do so.
Those who need a vehicle now shouldn't fret about high prices. By applying for auto financing ahead of time, drivers will be able to ensure their purchase is fully funded with a monthly payment plan that works for them.