Used Car Values Expected to Grow Less Than 2011

As winter starts to give way to spring, some motorists may be interested in starting out the warmer seasons with a new set of wheels by way of a used car. But before they do, it might be wise to look at what the market has in store for the next several months, and according to Kelley Blue Book, there is both good news and bad news.

Industry experts are predicting that the values of used cars will rise between 3 to 5 percent from now through June. Though that might deter some consumers from shopping for a used car, when compared to this time last year, prices are much lower. Between January and June 2011, used car values rose 10 percent.

There are a number of reasons for the lower rates of increase, but a lot of it is tied to the fact that gas prices may not be as high as they were during the spring of 2011. In that time, the demand for compact and hybrid cars rose considerably, which tended to drive the price up.

"Values of compact and subcompact cars should outperform the overall market average, but not by more than 2 to 3 percent, unless speculative investors drive up oil prices," KBB reports.

Regardless of how much the value of used cars rise, there are numerous benefits of purchasing a pre-owned vehicle. For example, you'll be able to save money on insurance and many used cars are as reliable as their brand new counterparts, according to Edmunds.

Though the values of used cars may be rising, you won't have a problem locating a good deal at New Jersey State Auto Auction. The wide variety of makes and models offered at the dealer all come at affordable prices.