17 Aug 2011

Used cars drawing higher prices

TAMPA - James Baker just bought a 2008 Ford Focus. He says used is the way to go and he wouldn't buy anything else.
"It costs less, plus also if there's anything else that needs to be done, like if anything's been done to it, they already tell you," Baker said.
Used car sales are brisk at local used car lots like the one at Bill Currie Ford in Tampa.
"It's been economy driven. People have shied away from the rising price of the new car," says Bob Wilkinson, used car manager at Bill Currie Ford.
According to the consumer automotive experts at Edmunds.com , used car sales are doing pretty well all over the country. Edmunds.com says more people are buying pre-owned vehicles, instead of buying or leasing new ones.
"Yes, used car sales are up. The reason is we're in a down economy and people want to save some money," says Edmunds.com Consumer Advice Associate Ron Montoya.
But Montoya warns high demand can translate into high prices.
"This is definitely a seller's market, since dealers want more cars, more used cars. Since there's a shortage of used cars, they're going to give you a little more money than they would a few years ago, and you can shop that around," Montoya adds.

Quantity and quality are what used car dealers want and need.
"It seems like we're seeing better cars getting traded. People are taking better care of them and extending their life," Wilkinson said.
While new car sticker shock and high gas prices are both reasons consumers are driving towards smaller and older models, Edmunds.com says there are other things to consider.
"With a used car, you can save some money initially, but you know there's some more mileage. You may have to do some more maintenance to it," Montoya points out.

Still, car shoppers like James Baker are convinced the deals are at the used car lot -- and used car dealers aren't complaining.
"If we're able to certify it and do things to it as if it was new and sell it in wonderful condition people are taking advantage of the bargain so to speak," says Wilkinson

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