Used Car Prices Hit High

According to the article "As Used Car Prices Hit a New High, Where to Look for Deals in Florida" by Steven Cole Smith on sun-sentinel.com, the cost of used cars is at a high in Florida and many other places throughout the US. This is not what drivers want to hear as they are already dealing with devastatingly high gas prices which are causing financial strain on millions.

May's Manheim Used Vehicle Value Index, which is a monthly analysis of used cars values through Manheim Consulting, is the world's biggest broker of used vehicles and they are seeing the same trends throughout Florida. Used car prices are up and most likely not coming down any time soon. This can also have an impact on used car insurance since replacing one of these cars gets pricier for the auto insurance companies. This is a double whammy for those who were hoping to save a pretty penny by purchasing a used car during these tough economic times.

The analysis says lower wholesale supplies and higher retail demand are two of the main factors influencing the price of used cars. In addition to this, wholesale used car prices are also being affected by tight inventories of the new car market. As car owners feel the stress of economic struggles, they hold on to their current car longer making less cars available. Good used car deals are getting harder and harder to find and some Florida residents are traveling to other states to get a good deal. One good thing coming out of this is if you do want to trade in your car for a new one, you will most likely get a very good deal since people are short on used cars.