DETROIT, Aug. 4 (UPI) -- After two consecutive months of improving prices, a sagging used-car market is showing signs of recovery, the Detroit News reported.
A glut of trade-ins from motorists taking advantage of two years of zero-percent financing offers and lush cash rebates for new cars had pushed used-car prices so low that customers often owed more on their loans than their cars were worth.
But dealers say an increase in used car prices has added stability to the market. Retailers are also seeing stronger sales of such moneymakers as service contracts, warranty repairs and add-on accessories.
More automakers are offering the used car certification, which essentially assures buyers a used vehicle has been inspected before being resold. Some dealers offer some kind of warranty -- a once unheard-of perk for a used car.
J.D. Power and Associates auto analyst Jie Cheng said dealers are keeping their inventories low as well.
"Dealers have become very smart," Cheng said. "Inventory policies have greatly improved."
