The used car prices are finally starting to drop. On the surface, this seems like a good thing, but there is one drawback. What does this mean moving forward, and does it mean anything for people who have just recently bought a used car?
Since early 2020, when Covid-19 rampaged the entire globe, the price of used cars in The United States has shot up exponentially. Now, in late 2022, the prices seem to be finally coming down. With inflation a kind of financial epidemic of its own, the demand for used vehicles has never been high. High demand for used cars meant favorable prices for those hoping to sell them. Over the past year and a half, used cars have been sold for way more than they are worth. This has been great for sellers but very unfortunate for buyers looking for a car. Finally, as demand stays ever-present, prices are beginning to drop for used cars.
What You Need to Know
What you need to know is this: used car prices are dropping and they are dropping fast. What you can do with this information is wholly up to you, but if you are looking to buy or sell a used car, this information is highly valuable to you, and you may need to act fast.
Covid-19 and an unstable market have caused the price of used cars to shoot up. How much did they increase? Well, in some cases, used cars were being sold for over 70% of their estimated value. That’s just insane. Currently, on average, used cars in America are being sold for about over 40% of their estimated value. This price change has come fairly recently, which suggests we are in the middle of this price-dropping process.
What Does it Mean and What Should You Do Now?
What does this mean? Well, that decides which side of things you are on. Are you a potential buyer? Or are you a seller looking to make some money?
If you are looking to buy a used vehicle, now might not be the time for that. Sure, the prices are lower than they have been in a long time, but they may be even lower very shortly. In fact, with inflation so high and the market so volatile, prices have nowhere to go but down, and demand can only stay high for so long. You might want to wait just a little bit longer before buying that used car.
If you are a seller, sell immediately. With prices dropping fast, now might be the last time to get the most money out of your used car up for sale. If you risk waiting for someone to match your price, you might lose the opportunity altogether to sell your car for more than it’s worth. Demand is still high, and prices are still favorable. Don’t waste this chance.
If you are a recent buyer of a used car, you are in a bit of a pickle. You do have an option, though. You could consider reselling your used car for a good price and saving that money to spend it on a different used car when the market for used cars is better. That said, it might be a gamble you are not willing to make.
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