High used-car prices make it ideal time to sell

[Dokkie]

DETROIT (AP) -- It's the best time in years to sell your car.

People are holding on to cars and trucks for about a year longer than they did before the recession, which has created a tight supply of used vehicles. So few are on the market that prices have risen to their highest in at least 16 years.

Dealers are paying an average of $11,660 for a used car or truck, up almost 30 percent since December 2008.

"You're not going to find a situation like this very often," says Jonathan Banks, executive auto analyst for the National Automobile Dealers Association used car pricing guide.

The run-up in prices for used cars has been so dramatic that it almost doesn't make sense to buy them anymore, says David Whiston, an auto analyst for Morningstar. That's probably a good indication that prices are at or near a peak.

http://finance.yahoo.com/news/High-usedcar-prices-make-it-apf-1448054913.html?x=0

Say what you will about cash for clunkers but why they did not mention all the used cars taken out of commission from the program as a possible explanation for this increase in used car prices. I have been in the market for an early model used car and I noticed this even before the Japanese tsunami.

[liberal N proud]

1. I have held on to my car for 10 years

6 longer than usual.

[spinbaby]

2. The trouble with that is...

...you'd have to also pay more to buy another one. Unless you can do without a car altogether, which most of us can't.

[Johonny]

5. +1

[madville]

3. Just sold my 2004 vehicle

Just sold my 2004 vehicle, paid $12,500 for it in 2008 with 68k miles, sold it a few months ago with 130k miles for $10,000. Turned around and found a deal on a 2007 model with 17k miles for $14,500. We also just bought the wife a new car after incentives and hard bargaining for $13,900, 2-3 year old used similar models were going for the same price or $1,000 less, buying new was the way to go there.

[Habibi]

4. Just sunk $2000 in my 95 Saturn wagon (exhaust and brakes)

because it was cheaper than buying a used car. Used car prices are out of my budget these days.

[moparlunatic]

6. Cash for

Clunkers took a lot of good cars off the market. Supply and demand.