It’s no secret that used car prices are high right now. In fact, they have been steadily increasing over the past couple of years. So is it a good time to buy a used car? Or should you wait until prices come down? That’s a tough question to answer, but in this blog post we will take a look at the pros and cons of buying a used car right now.
Let’s start with what’s caused the high prices. One of the main reasons is that new car sales have been down since the start of the pandemic, due to chip manufacturers being unable to meet the soaring global demand for semiconductors. This has led to a decrease in production of new cars, which in turn has driven up prices for used cars.
In addition, as we’ve all heard, the supply chain issues caused by the pandemic have led to higher prices for just about everything and used cars are no exception. While there are other reasons for the high prices, these are the main two.
Used car prices are up over 40% from last year, and in some cases even more. So what does that mean for you if you’re in the market for a used car?
Well, it all depends on your personal circumstances. If you need a car right now and can’t afford to wait, then you may have to pay more than you would have a year ago. On the flip side, you’ll receive more money for your trade in than you would have previously.
How long before used car prices come down? That’s impossible to say for sure, but it doesn’t appear things will ease up any time soon. With that in mind, it’s important to do your research and make sure you’re getting the best deal possible if you do decide to buy a used car right now.
We’ve not seen anything like this in our lifetime, so it’s difficult to rely on historical data for decision making here. It’s quite possible that if you buy a used vehicle right now it would continue to increase in value over the next year or two. The downside is there may be a heavy loss in value in a couple of years.
The bottom line is this… If you need to buy a used car or truck, just go for it and make sure you’re getting the best deal possible. Like it or not, waiting it out isn’t an option for most us.