Updated 05/23/2011 05:30 PM
Used car prices soar, causing buyers and dealers to struggle
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FAYETTEVILLE – When shopping for a car you would think buying a used instead of new would save you money, but right now that's not exactly the case. The price of used cars has risen anywhere from $1,500 to $3,000 in the past six months.
Right now it's a viscous cycle, new cars aren't leaving the lots, so used ones are not coming in.
EZ Auto in Fayetteville says since 2008 when the economy took a turn for the worse, so did car sales. They say unfortunately it's caused high demand for a product that's hard to come by.
"The demand has stayed there, but the supply has gone away. Hopefully once they start selling more new cars, we will have some more used car supply,” says, Chris Martin, the president of EZ Auto.
Martin and his team are looking for the best product out there when they attend used car auctions. But the quality car at a decent price isn't being found often.
A car that should be starting at auction at around $10,000 is now starting at $11,000 to $13,000, causing many dealerships to have to cut back on their inventory.
A little more than 50 cars sit on EZ Auto's lot now, they say they prefer to have 70 to 100 but they will take what they can get.
"You can't sell them if you don't have them and we have had to just step up and pay a little more, but again we are trying to pick and choose and make sure we are getting the nicest, best quality vehicles for the money,” says, Chris Martin
The price of used cars is not only making it hard for the dealer to find, but the consumer to afford. After searching lot after lot, Cora Orozco paid $15,000 for her Ford Focus.
"I have been looking everywhere for prices, and then they say if you don't have perfect credit, then you can't go no where and get a car,” said Orozco.
No matter the cost, both the dealer and consumer have to shell out the cash in order to keep rolling forward.