Used Car Prices Set To Drop As Leased Vehicles Predicted To Flood Market
SAN FRANCISCO (CBS SF) -- Consumers in the market for a used car might want to hold off for a few months as prices are dropping.
The car sales boom over the past few years means that leases will soon be up on millions of cars that will flood the market, driving down used car prices which zoomed sky high after the recession.
Local used car dealers aren't seeing the flood of cars yet. In fact, some prices are still high in some parts of the country.
Salesman Alex Dimant said he'd like to have more to sell. He may soon get his wish.
Nearly one in four cars in the U.S. is now leased. Jessica Caldwell of Edmunds.com cautioned that the increased supply may not drive down prices on all used cars.
"Luxury brands, they do a lot of leasing so there's likely gonna be a lot of inventory there," said Caldwell. But she said large and light trucks won't see much a decrease because not many of them are leased.
So how long should you wait to buy? Caldwell said wait a couple of months for the seasonal shift in prices. More used vehicles hit the market towards the end of the year when the new crop of cars hit dealer showrooms.
In the meantime, Dimant is waiting.
"If I can get the inventory, I'll sell the cars," he said.
