This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

It's Finally Time to Buy Used Cars Again

A better economy means more sales of new cars, and rising prices. Smart buyers look to the used lots.

NEW YORK ( TheStreet) -- With the economy inching forward, the new car market gathers strength and buying a vehicle gets more expensive.

According to an look at October, new vehicle sales are up 10% on a year-to-year basis, with American auto giants Ford (F) and General Motors (GM) garnering 35% of the global auto sales market (16% and 19% of the total market for October, respectively).

But some auto buyers are seeing lower prices and wider options -- by focusing on used vehicles.

Used cars are selling at their lowest prices since 2009, says. The average used car price in the third quarter of 2013 clocked in at $15,617, the lowest since the third quarter of 2009, when prices stood at $14,808.

Prices have really slid since 2011, Edmunds points out, when used cars and trucks sold, on average, at $16,473.

It's a matter of inventory. With more interest in new cars as the economy improves, that leaves more used vehicles idling at dealerships and lower sticker prices as dealers cut prices.

"Now that the new car market has hit its stride, buyers are no longer drawn to used cars the way they have been in recent years," says Joe Spina,'s director of used-car analysis. "Used car prices will likely continue to decline in the coming months simply because there will be more of these vehicles sitting on dealer lots."

Edmunds advises used car shoppers to focus on the automakers that seem to be coming through with the best pricing deals. On that list are Volvo, GMC and Chevrolet. Vehicles from those companies are stalling on dealer lots the longest, and thus seeing the biggest stick price discounts.

Focus on most major Japanese auto manufacturers -- companies such as Honda (HMC), Toyota (TM) and Lexus -- and you'll pay more. Edmunds says those brands are in the highest demand and are moving quickly, even at higher prices.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs