“As the economy worsens, demand for used cars increases as consumers try to manage their debt load and the lower price of a used car relative to a new one becomes a more attractive option,” analysts explained. “Though incentive programs to purchase new cars may reduce some of the increase in demand, most incentives are typically short lived.”

“Used-car prices will also continue to be supported in the near term as the supply chain for new vehicles continues to struggle with effects of the earthquake and tsunami activity in Japan.”
Source: SubPrimeNews.com

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