Used Cars in High Demand, Prices Higher than Normal

PHOENIX - Are you in the market for a used car? You might have to spend a little more than you expected. Prices are at a 16-year high!

Sales of pre-owned vehicles have spiked.

Blame it on everything from the auto market collapse a few years ago, to the earthquake in Japan, to a demand for fuel-efficient vehicles.

Javier Ray from Cactus Jack's Auto Sales says that they can barely keep up with customer demand for an inexpensive set of used wheels.

That's evident at the wholesale auction. Sales have gotten a lot more competitive, a result of the basic supply and demand law.

"The cars that we used to be able to buy for $3-4 grand are coming out for more, because there are more people [auto sellers] wanting to sell those cars. So the higher-end cars, they're less because no one is bidding on them," he says.

The Odessa Auction in Chandler, where dealers go to shop for inventory, says they've seen potential buyers from all over the west coast.

Source: http://www.myfoxphoenix.com/dpp/news/consumers/used-cars-in-high-demand-5-18-2011

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