Buyers bidding above ask for used cars
The beige 2003 Honda Civic sat on Mike Haile's used car lot in Atlanta for only three days before he sold it for $8,200. And that was $300 more than the asking price.
The car, with 62,000 miles on it and equipped with an automatic transmission, sunroof, air conditioning, side air bags and a compact disc player, is a perfect example of what Haile and other auto industry experts say is a consequence of nearly $4 per gallon gas: A run-up in the price of used small cars.
"These little cars are very hot, like hotcakes, they sell fast," said Haile, who has filled his 15-car lot with smaller vehicles he bought at regional auto auctions in Atlanta and Orlando, Fla.
In the past month, Haile says, the price of used small cars has risen dramatically as gasoline steadily escalated to a record nationwide average of $3.80 per gallon.
At the auto auctions where dealers get many of their used vehicles, bidding wars are erupting over compacts, he says.
"It's extremely high right now," Haile said. "The small cars are very hard to get right now. The cars that were $5,000 are now $7,000."
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