Anybody looking to sell their used car, or trade it in for a different model, is certainly in luck. The Buffalo News reports that used car values have been steadily rising over the past several years, and are currently at some of their highest.
When it comes to Kelly Blue Book's valuation, prices are up an average of between 39 and 45 percent. It's not too hard to understand why, either. At the lowest part of the economic downturn, manufacturers reduced production, and the Cash for Clunkers program removed a large number of potential used cars from the market – and now drivers are reaping the benefits.
The rise in value has been especially helpful to consumers looking to trade in their current vehicle for a new or used model. In fact, for some drivers like West Seneca, New York, resident John Ehrig the increase in value convinced him to trade in his 2003 SLS Seville Cadillac for a 2005 Chrysler 300c in the first place.
"That's the only reason it worked out: They were willing to give me more than it was worth," Ehrig told the news source. "It was the car that had everything that I wanted."
To fully illustrate the point, the news source highlights the fact that in 2008, a three-year-old Honda Accord would have only brought the driver about $11,000 in trade in value. Today, a three-year-old Accord would get more than $16,000.
Still, there are some cars that have proven to be better trade in options than others. Specifically, CNN Money reports that Kia and Hyundai are excellent choices because they have the lowest ownership costs among sedans, making their resale value especially high.
While the market may be good for used cars right now, there are still some ways that car owners get the highest possible trade in value out of their car. One of the most important things that consumers should remember when shopping around for a trade in is to be aware of how much their car is worth, that way they can be sure whether or not they are getting a fair shake.
"The key to doing well in a transaction with a dealer is to be knowledgeable," market analyst Jack Nerad told bankrate.com.
Furthermore, the website recommends not being tied down to one dealer since going to multiple lots wlll give prospective buyers more options.
