McLEAN, VA – Although used car prices likely peaked in June, average trade-in values of many popular, fuel-efficient small cars for the 2006-2009 model years are still expected to be 10 to 30 percent higher in August 2011 than they were at the beginning of the year, said Jonathan Banks, senior analyst with the NADA Used Car Guide.
For example, average trade-in values for the Toyota Prius are expected to be 30 percent higher in August 2011 compared to January 2011, according to the NADA Used Car Guide.
“Car owners still have a lot of equity built up in their used cars, which puts them in a better financial position to make a down payment on a new vehicle,” Banks said. “Looking ahead to the fall, we expect prices on used small cars to drop slightly as consumer demand for new cars increases with the arrival of the 2012 model year, a new round of manufacturer incentives and moderating gasoline prices,” Banks said.
Below is a NADA chart that details expected trade-in values this month for several popular small cars, including the Toyota Prius and Ford Focus.
NADA Used Car Guide average values for the compact and midsize car segment peaked in June 2011, increasing by 18 percent and 13 percent, respectively, from January 2011. Over the same six-month period, values for the overall market declined by 1.4 percent, led by a steep drop in demand for large SUVs and pickups.