March 15, 2010
The economy remains sluggish and new car sales remain far below previous norms. That, along with the financial incentives Toyota has been forced to offer, has made for some deals in the new car showroom.
But the used car lot is a different story. Consumers continue to show a preference for previously-owned vehicles and, as a result, prices are actually going up.
Used car prices are up about two percent from last month, not counting used Toyotas, whose value is down about 2.5 percent, according Edmunds.com, the automotive Web site. That means if you're in the market for a used car, and aren't bothered by the reports of unintended acceleration and other problems, a used Toyota has just gotten a lot more affordable.
"Many used car buyers are turned off by the negative publicity surrounding the Toyota recall, so prices of those vehicles are pacing at about 4.5 percent below the market," said Edmunds.com analyst Joe Spina. "Also contributing to the decline in values is the fact that a fair number of Camry and Corolla models were recently returned by rental fleets, making it somewhat of a buyers' market for those vehicles."
Compared with this time last year, the average three-year old midsize sedan increased 6.6 percent in value, while the average three-year old Camry price is flat. Compared with January, before the Toyota recalls came to light, prices for used Camry models are down almost 4.5 percent. By comparison, Mazda6 and Chevy Malibu have risen about 1.5 percent.
"Certainly there are bargains to be had because of Toyota's issues," said Edmunds.com Senior Consumer Advice Editor Philip Reed. "Car-shoppers are in a great position to negotiate, and once they pick up a Toyota - or any used car - they should immediately get their contact information into the automaker's owner database to be kept up to date on recalls and other alerts."
