If you cringe every time you turn the key, now may be the time to sell your used carfor an actual profit.
Certain used car makes and models are fetching higher values than new cars, FBN's Jeff Flock reported on Monday, as several recent events at home and abroad have created the perfect storm for used car sellers.
At the height of the recession in 2008 and 2009, there was a shortage of used cars at dealerships across the country, which drove up demand. During this same time, leasing was also essentially non-existent, Flock reported, due to tight credit during the recession.
The government's Cash for Clunkers program also helped push up used car prices, after taking more than 700,000 used vehicles off the road. And the earthquake and tsunami in Japan earlier this year all but halted production for some automakers, adding value to used models.
Compact cars that are between one and five years old are worth 30% more than they were six months ago, Flock reported. At the Patrick Auto Group in Schaumburg, Ill., General Manager John Leanardi said used hybrid cars are seeing the biggest increases in value.
"We recognized almost a year ago that there was going to be a shortage of cars, so we have been trying to buy cars from the outside," Leanardi said. "Being in business for as long as we have, we have a great customer base. Why not offer them top dollar for their [used] car in order to get those cars for trade."
The auto dealer said since the used cars popularity growth, he has been making offers for vehicles that are brought in for service.