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Hike in Used Car Prices Seen This year

February 6, 2012

New York, February 6 (FinanceEnquiry.com) - According to the National Automobile Dealers Association, the average price of used cars is set to increase 1.8 percent in 2012 for the third consecutive year, with most of it expected to go up in the second-half of the year. In 2011, the prices escalated 3 percent from the previous year.

A midsize used car worth $10,325 two years ago, will likely sell at an average price of $11,850 this year. Similarly, the current price of a used pick up truck is $19,050, compared to $17,050 two years ago.

The financial crisis in 2008 made consumers to hold on to their cars and production of new cars also dropped. The number of used-cars in the market slumped further with repossessions also declining. Demand for used cars increased as consumers shopping for cars in the recession started buying used-cars, hence increasing the price as well.