Authors: Jeanette Torres
(LOS ANGELES) -- One of the biggest investments that the average American makes is turning out to be a gold mine.
According to Kelley Blue Book, late-model used cars are soaring in value because of weak new vehicle sales, which in turn is making slightly older automobiles a more scarce, and therefore more hot, commodity.
Kelley, the gold standard in auto pricing information, says that the average one- to three-year-old vehicle is selling for around $23,000. Compare that to 2008, before the bottom dropped out on the U.S. economy, when used cars were averaging around $15,000.
That's a 16 percent increase annually. Practically no other current investment boasts such a great return.
Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book, adds, "Consumers who plan to sell or trade in a used car soon will likely see their vehicle hold its value well. Alternatively, shoppers in the market for a used car will continue to pay more, making it difficult to buy at a discount."
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