When is there going to be a used car "bubble"?

Every week I get the most emails asking when the bubble will burst on used car values. Do I hold off till the end of the year and look at used cars the same way we looked at new cars to get our best deal? In my 27 years in this industry I have never seen trade in values this high.

With rebates almost gone the additional values of the used car has been able to compensate the consumer and keep the auto industry on track . Take the Toyota Corolla, it had a $1,000.00 rebate at one time and now has no rebated but the average trade in has added that much if not more on some models in trade value.

If you have your books and records and your car is in clean or average condition most of these cars are bringing over book value. One thing to keep in mind, don't spend a lot of money on your trade in hoping to achieve a higher value. The money you put into your trade brings it to the evaluation amount. Give your car a good cleaning get your paper work together and trade it in, the dealership can do most repairs cheaper than you the consumer so let them do the work save your cash.

The higher values will start to taper off once the dealerships inventory gets back on track, you will start to see rebates and you will have the old balance in place once again.

If your sitting on an older car, high mileage and the car car is in good shape (cash cars) it is a great time to maximize your dollar. Cash cars in good shape are the hardest cars to come by especially when back to school and off to College parents are are the hunt!