More car customers may be looking at affordable auto insurance policies when they make a used vehicle purchase, as the prices for this automotive type continues to fall.
Used car prices reached an average of $15,617 during the third quarter, according to the Used Car Market Quarterly Report from Edmunds.com. This was 2.8 percent less than during the second quarter, as well as nearly 1 percent down from the same three-month period in 2012. The latest measurement was the lowest point recorded since the third quarter of 2009. At that point, the average was $14,808.
Despite the drop, the third quarter figure was still higher than during the recession, the report explained. This was due to there not being an average of at least $15,000 until the end of 2009. However, it was still notably lower than the cyclical peak of $16,473, recorded during the second quarter of 2011.
"Now that the new car market has hit its stride, buyers are no longer drawn to used cars the way they have been in recent years," said Joe Spina, director of used car analysis for Edmunds.com. "Used car prices will likely continue to decline in the coming months simply because there will be more of these vehicles sitting on dealer lots."
Vehicle sales on the rise
While prices recently took a hit, the seasonal effect does not seem to be affecting the vehicle sales market. According to a report from TrueCar.com, overall car sales for October was projected to exceed 1.2 million units. This would be more than 14 percent higher than the same month in 2012, as well as 9.5 percent higher than September's level.
"The government shutdown turned out not to be a factor in October sales," said Jesse Toprak, senior analyst for TrueCar.com. "A combination of factors, including low interest rates, attractive lease specials and great products continued to bring customers to showrooms in healthy numbers this month."
The report also noted that October's sales was the best performance for the month since 2007. Nissan had the most significant sales level year-over-year, as the figure jumped 21.2 percent. The manufacturer with the lowest yearly gain was Volkswagen Group, which only rose 3.9 percent.
When looking for a new vehicle, it may benefit some drivers to seek out car insurance policies that are inexpensive, but still give sufficient coverage.