Prices for Used Volvo Prices Going Up!
Finding a Certified Used Volvo
I was just updating the link in Find a Certified Used Volvo via volvocars.com, and started updating that post about how car companies are getting more involved in the used — OOOPS I mean “pre-owned” — car market. I wrote so much I decided to break it out into its own Volvo Blog post.
Used Prices Up, Dealer Prices Down
Generally, with the poor economy, used car prices have gone up while dealers new car prices have tended to come down. Generally. There are exceptions to every rule. So why is this? Wouldn’t used car prices come down during bad economic times?
Well, no. Quick background: banks have been getting beat up badly after making poor decisions starting in the 1990s. They were given “more rope” to make poor decisions by the US federal government, adding fuel to the fire. Essentially, they were allowed to take on more risk. They took advantage of the relaxed rules and got burned because people were suddenly allowed to borrow much more than they should have. Some people bought large homes. Some bought expensive cars. Some of them couldn’t pay the banks back. Thus many banks went out of business, some of them very old and very big. That scared the remaining banks into being very conservative with their loans. They went the opposite direction, which is where we find ourselves now.
So How Does This Affect Used Volvo Prices?
The nuts and bolts of it go like this: with banks today less willing to give out loans for new cars, car buyers tend to move toward the used car market. The more buyers in the used car market, the higher used car prices go.
Likewise, dealers with new Volvos might be feeling the other side of this coin — they might be willing to take a lower price than they would have two or three years ago. Especially if they’ve got new model year models on the lot or on their way to the lot. I know a guy who just got a new Nissan Frontier for about $5k less than sticker because of this exact situation. No trade involved, just straight up $5k off. Another friend’s girlfriend got a new stripped Nissan Altima for $17k and change.
So what we’re seeing is — in my opinion — all-time-high prices being paid for good/clean used Volvos. You might even see some in my Used Volvo section.
Information is Power When Buying a Used Volvo
Here are some links to help you save money when you find the right used Volvo:
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