More year-old cars have prices almost the same as new

[ALS]

the 2011 Chevrolet Camaro, which has an average price of only $126 less than the cost of a new 2012 model.

Chris Woodyard - USATODAY - August 6, 2012

A growing number of used cars are selling close to the same price as a new one, Kelley Blue Book reports.

The gap between new- and used-vehicle pricing in many segments has narrowed significantly. New vehicles are now selling on average for only 11.5% more than a comparable 1-year-old used car, KBB says.

Used subcompact and compact cars only offer consumers an average savings between 5% and 7% percent. Used hybrid cars and mid-size crossovers are within 3% to 4% of an equivalent new vehicle.

The shrinkage of the price gap defies what buyers usually expect, that they can save thousands by buying a rental car being booted from the fleet or other slightly used car.... [Read More]

[basjoos]

This is what happens when there is a shortage of late model used cars; the end result of the reduced production of new cars for the past 3 years and Cash for Clunkers program.

[WriConsult]

This is what I've been saying for quite some time. Since early last year, prices of used FE cars have gone through the roof. C4C, reduced demand for new cars, last year's tsunami reducing supply, are all having their impact.

Another effect, besides higher prices, is that anything decent disappears from the market after a couple of days, leaving a lot of junkers to sift through if you are trying to buy a used car.

I have noticed, however, in the last month or two, used Prius prices appear to have finally started to soften a little as people get used to sub-$3.50 gas again. My, aren't we fickle?

[PaleMelanesian]

This is looking good for buying a used car in 3-5 years, if you can wait that long.

[herm]

My theory is what people really want are new, reliable cheap cars such as the Nissan Versa for $11k.. then again I dont see so many of those on the street. So much for my theory..

[ALS]

Herm, I see more than a few around me.

[WriConsult]

In July the Nissan Versa was the #1 selling car in the B segment, beating out the Sonic, Accent, Fit and Fiesta.

Based on the reviews I've read of the new Versa sedan, its sales leadership is not because it's a better car than its B-segment competitors. It is the cheapest, plain and simple.

(FWIW though, the $11k model is not only stripped, but not upgradeable. If you want option packages including power windows or locks -- or pretty much anything else -- you have to step up to the $15k SV model, and then you don't even have the option of a manual transmission anymore).

[TheStepChild]

When I bought the 2011 xB the dealership had it priced HIGHER than a new 2012 model by $470. I almost left when I saw the window sticker, but went inside to ask if it was a typo. Nope, its right they said.
After some discussion of the 'added value' of being Toyota Certified and a better warranty than a new one, I asked them to show me what it sold for new in 2011. $1500 less than the asking price they had on it.
I did get it for less than new 2011 pricing.

[CRT1]

That's a racket. The used model was priced that way so they could pressure people into buying new and give them the false understanding of residuals.

[WriConsult]

Yes, pricing of used cars at new-car dealerships is a total ripoff, as is the Blue Book they use to justify their prices. No one with any negotiating skill pays anywhere near asking price.