"Steaming hot," said Ian Riding, a sales manager for Sun State Ford inOrlando.
"Hot, hot, hot -- the hottest I've seen in the 17 years I've been in this business."
This is great news if you are selling or trading a used car, but bad news if you're buying one.
"Used can values are literally 'out of the book,' " Riding
said, meaning that his
reference books that offer suggested used prices can't be updated often enough to follow the upward trends.
Example: "The value of a Ford Edge crossover coming off lease is supposed to be about $14,500," Riding
Another reason for the upturn in the used market is "uncertainty," Riding
said most all new vehicle dealers are offering "CPO" used vehicles, which stands for "Certified Pre-Owned.
These vehicles are typically the cream of the used market, either acquired through trade-in, at auction or outright from owners.
They are thoroughly inspected, and small problems are repaired.
CPO vehicles typically come with a warranty, which quiets the fears many consumers have for used vehicles.
The downside: They cost more -- as much as 10 percent above what a comparable non-certified car would cost.
Both Larson and Riding
said that fewer new-vehicle customers are trading cars in. "We've seen the percentage as high as about 75 percent," Riding
said, "but now I'd say 40 percent of people buying new vehicles from us have a trade-in.