USED CAR PRICES DROPPING

Omid Badie, Car Smart Eletter, 2022-04-15, 2022-04-15

Two months ago, we reported that the used car market may be in for higher prices as the pandemic’s fifth wave, along with the bridge blockade and protests, were impacting supply in the marketplace.

Here we are now, reporting that the used car prices are starting to decline. Since our report in January, the new car market inventory has started to somewhat pick up at dealerships and many consumers have decided to take advantage of the higher prices and sell their pre-owned cars. This combination has led to an increase in the supply of cars in the marketplace and, as a result, used car prices have taken a slight dip.

A third and, perhaps most important factor, has been the rise in gas prices. This factor has made many potential buyers wary and reduced demand.

According to Kelley Blue Book, average used car prices are down $572 from December and declining.

So, the combination of increased supply and decreased demand has been driving down prices.

However, used car prices remain at higher price levels than in pre-pandemic times, and higher year-over-year. Kelley Blue Book reports that used car prices are still 29% higher than in January 2021.

Certainly, though, the window of opportunity to capitalize on this hot sellers’ market is closing. If you or anyone you know is considering a change of vehicles or simply cashing in on a hot market, the time to act is now.

At Automall Network, we will not charge you to research your situation and give you advice on the best path forward for your transportation needs and your bank account.