Why are used car so pricey? (leasing, credit, buying)

[bloominscranton]

We are looking for my eldest son's first car. While he is 24 he has only been a licensed driver for 6 months, so hubby and I are helping him buy it. We also come from the school of thought that first cars should be older, but decent running. I am in complete sticker shock at the prices folks around here ask for used cars. Does anyone have any ideas on why they are so high? Or any idea on where we can look for one? Looking to spend 3K or less, which to me is still a lot of money.

[Hemlock140]

It's the same most places. The "cash for clunkers" program started it, by taking many good late model used cars off the market, many of them would be in your price range but they got more from the government. Then leasing (as opposed to buying) has become more difficult with a greater credit worthiness required, so there are not so many lease returns on the market. I just got a letter from a local dealer I have never been to offering me 15% over bluebook for my 2007, because they need good used cars for the lot. Shortage of cars means higher prices. Around here, $3,000 will get you something like a 1996 Ford Escort 5 speed with 160,000 miles, or a Toyota/Honda/Subaru with 200,000+ miles. Talk to friends and relatives, maybe someone is planning to trade in something and will sell it to you to avoid the hassle.

[bloominscranton]

Originally Posted by Hemlock140

It's the same most places. The "cash for clunkers" program started it, by taking many good late model used cars off the market, many of them would be in your price range but they got more from the government. Then leasing (as opposed to buying) has become more difficult with a greater credit worthiness required, so there are not so many lease returns on the market. I just got a letter from a local dealer I have never been to offering me 15% over bluebook for my 2007, because they need good used cars for the lot. Shortage of cars means higher prices. Around here, $3,000 will get you something like a 1996 Ford Escort 5 speed with 160,000 miles, or a Toyota/Honda/Subaru with 200,000+ miles. Talk to friends and relatives, maybe someone is planning to trade in something and will sell it to you to avoid the hassle.

Thanks for explaination, and the suggestion.

[bloominscranton]

The mileage with the prices added to the sticker shock. New cars with crazy mileage and very high prices IMHO.

[ughh]

craigslist. never buy from a used car dealer. they buy cars from the auctions, repair them and detail them and then markup the price 200%.

[bloominscranton]

Originally Posted by ughh

craigslist. never buy from a used car dealer. they buy cars from the auctions, repair them and detail them and then markup the price 200%.

ty!

[Riverside4ever]

for $3 k you can pick up a good used Subaru ... AWD and safe ..

[weluvpa]

Used cars are going up in quality and price, simply because few can afford to purchase a new car and then pay for the dealer required maintenance for your lease or new car in order to NOT void your warranty..

Now a days a car with 140,000 miles is nothing considering that some factory warranties are outwards of 100k.

I have two trucks one has over 200k and the other has over 170k and they are both 20 years old, run great, need nothing.

We also have a 10 year old truck with 140,000+k on it and again runs great.

It a used first car so really mileage shouldn't be a huge concern.

Check The Paper Shop.

[Riverside4ever]

I would also buy from a private owner before a dealer ... You can also go to auctions ..

[bloominscranton]

Thanks for the advice and suggestions. I forgot all about the paper shop!!! I am concerned about high mileage because I thought the life of a high mile vehicle is also dependent upon maintence.