Automakers’ employee-pricing deals drove record-high sales of 1.8 million new cars last month, and many dealers are now well stocked with trade-ins, leading to softness in used-car prices. Prices have fallen at least 5 percent from May to July, said Paul Taylor, NADA chief economist, and they could fall an additional 3 percent this month. He does not expect prices to begin firming up until October.
But the long-term trend is for stronger used-car pricing after this interlude, as a result of continued economic growth and employment gains, Taylor said.
This just in: Gulf state dealers stricken by Katrina say they can sell as many low priced used cars as they can get!
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