There Are Trade-Offs to Lower Used-Car Prices
NEW YORK (TheStreet) -- Those looking for a great deal on a used car this month have good reason to smile. Prices are down 2% so far this year, thanks to dealers' overabundance of cars and trucks.
Edmunds.com, which tracks used car prices, says auto shoppers can expect to see lower prices on used vehicles throughout the year.
But that should lead to a ripple effect through the market that could raise prices on new and leased vehicles.
Many car shoppers might not realize how much the new- and used-car markets feed off each other, says Philip Reed, a consumer advice editor at Edmunds. The boom in new car leases, for example, is leading to a higher number of lease returns, which adds to the growing inventory of used cars, forcing their prices down.
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