Used car market cools off as demand drops

Used car prices drop

wtopstaff | November 14, 2014 9:55 pm

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WASHINGTON – The time might be right to look into a used car, as prices are about to come down, analysts say.

When the recession hit, more consumers stopped buying new cars, and production on new models was cut. Instead, drivers turned to used cars, specifically later models with low mileage. With higher demand, used car prices increased by about 10 percent between 2009 and 2010.

Now, prices of cars one to three years old are expected to fall by 1.5 percent, the New York Times reports.

A large number of cars are also ending their leases, meaning they could soon hit the used car market.

WTOP’s John Aaron contributed to this report. Follow @JohnAaronWTOP and @WTOP on Twitter.

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