Will the price of used cars continue to go down? That is the big question, and luckily the verdict is a positive one. With the price of used cars skyrocketing over the past couple of years, it has been difficult to find a used car for a reasonable price. Things are beginning to change. As of right now, in late 2022, the price of used cars, and new ones for that matter, are beginning to drop.
The all-important question now is, will they keep going down? Car and business experts project that prices will in fact keep falling. How far will they fall? We will have to wait and see for sure, but it is projected that prices will decline slowly until they reach their actual estimated values, which is what they were at the beginning of 2022 before Covid-19 shocked the world. Now might be the perfect time to buy a used car. Keep reading to learn all you need to know about how prices are dropping.
Why Are Prices Dropping
Used car prices are dropping for a number of reasons. Firstly, they are dropping because supply is finally catching up to demand. In 2022, Covid-19 halted the world’s production of just about everything, including new cars. This, in turn, caused there to be a massive influx of customers looking for used cars instead of new ones. This drove up the price of used cars to unforeseen estimates. People were overpaying for used cars by over 70%. Inflation wasn’t helping with anything, either. Finally, with demand not as high, prices are beginning to return to normal.
What to Expect
Now, onto what really matters. Will prices keep falling and how far are they expected to fall? The quick answer is yes, they will keep falling. How far? Very far. While it is estimated that used car prices will remain high through the end of 2022, they should really begin to fall near the start of 2023. New cars are projected to fall up to 5%, which is not very convincing. On the other hand, used car prices will drop much more than that. An estimated fall of between 10% and 20% is projected for used cars. This is great news for anyone looking for a used car right now. With new car prices remaining very high and car leases getting more expensive, now might be the best time to go for a used one.
What to do
Are you looking to buy a used car in the coming months? Let’s put it simply. You have two options. You could buy right now while prices for used cars are still high, though getting lower each day. Or, which might be your best option, you can wait a few months and watch as used car prices fall even further. Either way, the price of used cars is going down, which is a good thing for the market, especially if you are a buyer. The choice is yours.
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