Used Car Shoppers Likely to Find Best Values in Small Cars

By Edmunds.com, Special for USDR

Prices of used small cars continue to drop, even as overall used car prices soar, according to a new report from Edmunds.com, the leading car information and shopping network. Edmunds’ Q2 2016 Used Vehicle Market Report suggests that the best values for used car shoppers can be found in the subcompact category, where prices are down an average of 6.3 percent year over year. Compact cars (-2.0 percent year over year) and midsize cars (-1.0 percent) also offer great value for used car shoppers who find themselves in a market where overall used car prices are up 2.7 percent year over year to an all-time high of  $19,367.

“If you’re a used car shopper in the market for a small vehicle, this is a great time to buy,” says Edmunds.com Sr. Analyst Ivan Drury. “Prices are down for these vehicles because there is so much more demand for used trucks and SUVs. There are also lots of smaller cars coming back to the used car market as people trade up into larger vehicles. So not only are prices low on used small cars, but there’s also a wide selection available.”

Best Used Car Values Q2 2016 vs. Q2 2015

Vehicle Segment

Avg Price Q2 2015

Avg Price Q2 2016

Q2 2016 vs. Q2 2015

Subcompact Car

$12,233

$11,461

-6.3%

Compact Car

$12,397

$12,153

-2.0%

Midsize Car

$14,039

$13,892

-1.0%

Large Crossover SUV

$22,310

$22,182

-0.6%

Premium Luxury Car

$45,291

$45,442

0.3%

Overall

$18,854

$19,367

2.7%

Edmunds advises shoppers to be aware of other used car segments for which prices have grown significantly year over year. Prices on used compact trucks, for example, are up more than 10 percent year over year. Other used vehicle segments with notable year-over-year price increases are large traditional SUVs (+8.9 percent) and premium luxury SUVs (+7.7 percent).

Worst Used Car Values Q2 2016 vs. Q2 2015

Vehicle Segment

Avg Price Q2 2015

Avg Price Q2 2016

Q2 2016 vs. Q2 2015

Compact Truck

$17,235

$18,978

10.1%

Large Traditional SUV

$24,652

$26,852

8.9%

Premium Luxury SUV

$37,626

$40,531

7.7%

Midsize Traditional SUV

$20,883

$22,477

7.6%

Large Car

$14,249

$15,315

7.5%

Overall

$18,854

$19,367

2.7%

“Demand is driving higher prices on traditional SUVs, so shoppers in the market for these types of vehicles may want to explore other options,” says Drury.  “They might want to consider, for example, a large crossover SUV, which offers similar size and utility, but is available at a much better value in today’s used car market.”

Other insights found in Edmunds’ Q2 2016 Used Vehicle Market Report include:

Best Q2 Since 2007 – The second quarter of 2016 saw 9.8 million vehicles sold in the used car market, an increase of 1.8 percent over the previous year. Franchise dealers’ used sales were up 4.0 percent over the second quarter of 2015 — its best Q2 ever.

Credit Counteracts Higher Prices – Shoppers are electing for lengthier loan terms (67 months on average) to help maintain affordability in the face of ever-increasing vehicle prices. Consumers are helped by low interest rates, which have fallen from last year.

Residual Values Dipping – Leasing has been a major force supporting new car sales over the past three years. But as the used vehicle market begins to see a higher number of lease returns, residual values are beginning to drop, which will likely mean higher lease payments for many new car lessees. 

The full Q2 2016 Used Vehicle Market Report from Edmunds can be found at  http://www.edmunds.com/industry-center/data/used-car-market-quarterly-report.html.

Edmunds.com proudly offers two million used car listings from thousands of dealers across the U.S., and many of them are available with Edmunds’ Used+ perks which include a free gas card, 24/7 roadside assistance and a one-month warranty. Used car shoppers can start to find their perfect car right now by visiting  http://www.edmunds.com/used-cars/for-sale/.

About Edmunds,  Inc.
Car shopping destination Edmunds.com serves millions of visitors each month. With Edmunds Price Promise®, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at 10,000 dealer franchises across the U.S. Shoppers can browse not only dealer inventory, but also vehicle reviews, shopping tips, photos, videos and feature stories on both Edmunds’ wired site and on its acclaimed mobile apps. Regarded as one of the best places to work in Southern California, Edmunds.com was also named one of “The World’s Top 10 Most Innovative Companies of 2015 in Automotive” by Fast Company. Edmunds welcomes all car-shopping questions on its free Live Help Line at 1-855-782-4711 and help@edmunds.com, via text at ED411 and on Twitter and Facebook. The company is based in Santa Monica, Calif. and has a satellite office in downtown Detroit, Mich., but you can find Edmunds from anywhere on YouTubePinterest, LinkedInInstagramGoogle+ and  Flipboard.

SOURCE Edmunds.com

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.
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