Pre-owned vehicles see substantial price hike

Buying a used car typically was reserved for the more thrifty consumer, or for parents looking to buy their teenage son or daughter their first vehicle. However, teens craving the smell of the open road may be forced to save their money for a couple years before financing their new car, as the price of used automobiles has risen between $1,500 and $3,000 over the past six months, according to The Wall Street Journal. The jump in price can be attributed to a combination of production cutbacks during the recession and the earthquake in Japan, which stymied the manufacturing of cars and car parts. AutoLoanDaily reports that an evaluation of 2011 used-car prices shows increases of up to 20 percent - compared to the average 2 percent increase of new car prices this year. It's clear that higher mileage vehicles have become more valuable. The media outlet recommends financing tactics for the inflated price of used cars. Potential buyers should consider a bigger down payment or shopping around for a third-party lender, which could eliminate dealership financing charges. Also, the strategy of not buying more than one can afford or needs may also be employed, at least until prices begin to drop.