High used-car prices make it ideal time to sell

It’s the best time in years to sell your car. People are holding on to cars and trucks for about a year longer than they did before the recession, which has created a tight supply of used vehicles. So few are on the market that prices have risen to the highest level in at least 16 years. Dealers are paying an average of $11,660 for a used car or truck, up almost 30% since December 2008. The run-up in prices for used cars has been so dramatic that it almost doesn’t make sense to buy them anymore, says David Whiston, an auto analyst for Morningstar. That’s probably a good indication that prices are at or near a peak. “For just a little bit more I can buy a brand-new car,” he says. “There’s a tipping point. I think we are getting very close to seeing that.” The rise in used-car prices is a consequence of the recession. The average car on the road now is 10.6 years old, according to the Polk research firm. That’s up from 9.8 years in the middle of 2007, a few months before the recession began and people were moved to reconsider making major purchases.