P&A Providers & Administrators
MenuMENU
SearchSEARCH

Kelley Blue Book Says Used-Car Prices Are Expected to Remain High for Years

August 11, 2011
2 min to read


With used-car prices at historic highs, customers hoping for those prices to decline may have to wait years for a reprieve.


Prices for used cars are likely to stay high for the next two to three years, according to a report released Thursday by Kelley Blue Book, which tracks new- and used-car prices, according to The New York Times.

Ad Loading...


The service attributes the sustained strength of used-car prices to a gradual decline in new-car sales dating to 2008, as well as a drop in the number of leased cars becoming available at the end of their contract terms.


The report said that the price of the average one- to three-year-old used vehicle was rising 15.8 percent per year. In 2008, the average cost of a one- to three-year-old vehicle was $15,042, but now the average is $23,353, according to the report.


Many in the industry, Kelley Blue Book included, had claimed that used-car prices peaked late this spring. Forecasters had said that healthier new-car inventories, aided by the recovery of production capacity in Japan after the March earthquake and tsunami, as well as lower fuel prices, would lead to a sales uptick in showrooms and, subsequently, more trade-ins and private sales of used cars.


But showroom sales remain sluggish, and analysts now are concerned that volatility in the financial markets and sustained high unemployment may encourage potential buyers to hang on to their vehicles rather than buy new ones.


Daniel F. Akerson, the chairman and chief executive of General Motors, expressed skepticism earlier this week that total new-car sales, across brands, in the United States this year would reach the company’s forecast of 13 million vehicles. July sales suggested an annual selling rate of about 12.2 million units.

Ad Loading...


For those who can afford to part with their cars, particularly compact and midsize models, the selling environment is optimal.


Manheim Consulting, which follows used-car sales, says the average price of a small car rose 16.7 percent in July compared with the same period a year ago, while the average price of a midsize car was up nearly 12 percent.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →