6 On Your Side Answers: Harsh winter leads to higher used car prices

KNOXVILLE (WATE) – Car dealers look forward to the spring and summer months, which bring good weather and lots of customers. This spring, used vehicle prices are showing significant increases; they’re holding their value.

Arnold from Sevierville asks: “I have a four year old car. Is it time to sell it?”

The harsh winter pushed many spring used car sales into April, forcing wholesalers to remain active in their bidding throughout the month, and that pushed up prices of relatively new older cars and trucks.

According to Black Book data, published by National Auto Research Corporation, the average price of used 2008 through 2012 models saw a one percent retention in value, compared to a depreciation in value the previous month.

Entry level cars, like the Chevy Aveo, Nissan Versa and Toyota Yaris, lead all segments with the strongest monthly retention, gaining four percent in value in April.

Compact SUVs joined mini-vans as the two truck segments with the strongest retention at 3.5 percent each..These vehicles include the Jeep Wrangler, the Nissan Xterra, the Dodge Caravan and Ford Freestar.

For March and April, the prestige luxury car segment lead sales with the highest depreciation in value at 1.8 percent, and the luxury SUV models led all truck segments with the highest depreciation of just under one percent in April.

To illustrate the overall strength of the market during April, ten of 24 segments posted a two percent better-than-average change in value.

You can see Don Dare’s 6 On Your Side Answers every Tuesday and Thursday on 6 News at 4:00.

If you have a question you can send Don an email at ddare@wate.com or call his 6 On Your Side hotline at (865) 633-5974.

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