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In the last three months or so, the prices of used vehicles have increased by an average of 2.3% whereas they would have fallen by 2.8%.
In the late spring, Bob Castaldi began to check online prices for used cars, wondering if it would be time to sell the 2014 Honda Civic loaded with his family.
Every month, the retiree in the suburbs of Phoenix, Arizona, saw the suggested retail price increase from $ 700 to $ 900, depending on where the car would be sold. Last month, Castaldi felt that the circumstances were good to register the car, with just over 30,000 miles, and went on sale priced at $ 16,785.
What Castaldi has found is evidence of a more general change in the automotive sector: for the first time in three years, the price of used sedans has steadily increased, driven by the demand for a car. US buyers who can not afford to join the seemingly endless SUV boom.
"I was surprised to see that it has increased," said Castaldi, who has had inquiries, but no offers at the moment.
Since gasoline prices began to fall in mid-2015, the prices of new and used compact and medium sedan sedans have dropped dramatically, with Americans avoiding the traditional family car for SUVs in the US. hatchback more versatile and more versatile. But this year, things have changed.
"We had 11 consecutive weeks of price appreciation this spring and summer, when we had seen a depreciation in the prices of used vehicles," said Jonathan Smoke, chief economist at Kelley Blue Book.
Used vehicles usually lose 1% of their value per month as they accumulate miles and wear normally. Normally, they only enjoy it in the spring, when demand is strong, at the height of the tax refund season, Smoke said.
Over the last three months or so, second-hand vehicle prices have risen by an average of 2.3%, whereas they would have fallen by 2.8%, for a variation of more than 5% value, he said. All segments appreciated, but compact and medium cars were the most pronounced, according to Smoke.
According to Kelley Blue Book, the average price of a new vehicle in the United States has steadily increased since the Great Recession to reach $ 35,990, an increase of 3% over the previous year. This is out of reach for many buyers, say analysts and dealers.
But the average 4-year-old middle-aged car costs only $ 13,100, although it has risen 8% this year, according to Black Book, which tracks sales and used values. Prices for compact cars also increased by 8% to $ 11,650.
SUVs are always more expensive, but prices have not increased as much. A compact 4-year-old SUV now costs $ 15,950, up 5%.
"Demand is up for almost everything and the supply is down," said Jeff Wichman, who purchases vehicles for several dealers in the Lansing, Michigan area. He was among hundreds of dealers and reps looking for used vehicles at the Manheim Grand Auction in Carleton, Michigan, near Detroit last week. He says cars are hard to find, especially the Cadillacs he was trying to find for his customers.
In central Ohio, three of the four best-selling second-hand cars are all sedans, according to the iSeeCars.com car list service. At the top of the list are the Toyota Prius, followed by the Nissan Sentra, Hyundai Tuscon (an SUV) and the Toyota Corolla.
At Ricart Automotive Group in Groveport, the average price of a used car is $ 22,000, up from $ 17,500 three years ago, said Rick Ricart, vice president of the dealership.
The unexpected demand comes from "value-conscious consumers" who can not afford to buy a new vehicle and who could even be excluded from the SUV market from time to time, said Anil Goyal, executive vice president of operations at Black Book.
"It's more for a transportation need than for a custom need when you're looking for an SUV," said Goyal.
The move to used cars helps drive down sales of new vehicles in the United States. So far this year, they are down about 1% compared to last year.
SUVs are still popular. The Toyota RAV4, Nissan Rogue and Honda CR-V are Ricart Automotive's best-selling cars, Ricart said.
"People are looking to buy cars with which they can do more," he said.
Vehicles coming out of their leases are particularly popular, Ricart said.
"It takes away from the new car market," he said.
Brent Harper, of Powell, keeps away from the new cars. He bought four lightly used vehicles in the last three years and was looking for another one last week at the Hatfield Used Car Center, located on Georgesville Road. Harper, 53, focuses on mileage and price.
"I believe in the following motto: as soon as you drive a new car out of the car park, you've already lost a few thousand dollars and amortized," he said.
The resident of central Ohio bought used cars in Toledo, Akron, Cincinnati and Sandusky.
"It's hard to find a good car in the Columbus area because they come and go so fast," he said.
Scott Fink, who runs the Hyundai and Chevrolet dealerships in the Tampa, Florida area, sees more and more people in his area embarking on second-hand sedans or new smaller cars. The New Port Ritchey area, where the Hyundai dealer is located, has many middle-income fixed-income retirees who need to replace their vehicles.
They will buy new Hyundai Elantras compact, which Hyundai is currently offering, or plan to rent or spread their payments for seven years, he said.
"In the end, SUV prices continue to rise, new car prices are rising," he said.
Another factor that explains the price increase is that even buyers who could afford new vehicles or used SUVs will look for bargains on used sedans since they have largely the same characteristics. Thousands of well-equipped cars are returning to the market after three-year leases signed in 2015, still at relatively low prices, said Goyal.
In 2015, cars accounted for just over 44% of new vehicle sales in the United States, but declined to 29% in August, as the trend towards trucks and SUVs continues. Goyal thinks that the trend is specific to used cars and that he does not expect a further increase in the demand for new sedans.
And even the price increase of used sedans might not last. Smoke says that prices have recently started to stabilize and even fall slightly, but they still do not depreciate as they had been.
The reporter of the dispatch, Megan Henry, contributed to this report.
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