The Used Car Market in Florida is "Steaming Hot!"

The economic rut that the car industry suffered at the hands of a recession slowed the way consumers spent their money.  After the decline, we saw a slow rise in car sales and overall productivity as job security improved and American's began feeling comfortable purchasing new cars again.  Now, with the emergence of innovative new technologies and higher MPG rates, it's a prime time to purchase.

Ian Riding, a sales manager at a dealership in Orlando, said: "How hot is the market for used vehicles in Florida? Steaming hot.  Hot, hot, hot -- the hottest I've seen in the 17 years I've been in this business." .  Example: "The value of a Ford Edge crossover coming off lease is supposed to be about $14,500," Riding said. "The actual value is closer to $18,200."

Visiting an auction has never provided so much positive feedback, according to Alan Starling, owner of three dealerships in Central Florida. He said he has "never seen anything like this in the 40-plus years I've been in the business. Used cars are actually appreciating."

The used car market is hot for couple reasons:

1. The shortage of new vehicles as a result of the earthquakes and tsunami's in Japan.  It has produced slowdowns for supply parts and electrical components.  These crucial parts belong to almost every car maker in the world.  Even if cars are built in the US, they still require parts that are manufactured in Japan. 
2. Uncertainty. Riding explained: "We're seeing a lot of cash deals for used vehicles. Either because of consumers' concerns about the future, or because of the difficulty they may have in getting financing due to a home foreclosure or some other problem, plenty of them are paying cash."
3. Loan contract. Todd Shepard, a man who purchased a 2007 Ford Mustang from a private seller explained: ""I could afford a new one," he said, "but I'm just not willing to commit to a four- or five-year loan."

New car sales are still huge.  Larson said his Hyundai dealership's are running strong.  Sales are up about 45% over last year, due largely to new models such as the redesigned Sonata and Elantra.

Used vehicles that offer "CPO" vehicles (Certified Pre-Owned) are the "cream of the crop."  They are acquired via trade-in, Florida auctions, and even owners.  Inspected to a T, these vehicles act as the focal point of US used car sales.  The only downside: They cost more -- as much as 10 percent above what a comparable non-certified car would cost.

Gas sippers are the hottest thing right now in the used market.  "Regardless of where these used-vehicle values end up, fuel-efficient vehicles will remain a smart purchase for budget-conscious consumers," said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book. "Our advice to dealers and consumers is to shop with caution today," since values are likely to fall through the summer. "If possible," he said, "it would be best to hold off on purchasing a fuel-efficient vehicle until after summer, when values should be more stable."