when to buy a used car in the current market

In 2021, we saw a high climb in used car prices. Things have gotten a little calmer, but prices are still around 22% higher than they were last year. This is all because of the new car shortage that is putting pressure on the market.

Although interest rates and gas prices are still up, there is hope. Compared to 2021, more used cars have been marked down, though many of these markdowns are for cars that are less fuel-efficient.

Today, older models have become more affordable, even though cheaper cars are running for $7,000 to $10,000 more than what they were a few years ago. What that means is that if you have $15,000 for a used car, you’ll still be able to find something that suits you, it’ll just be older than what was previously available. However, prices for cars that are only 1-3 years old are still way too high for the average buyer.

when to buy a used car in the current market

Inflation, high interest rates on auto loans, and high dealership markups are certainly some factors that have slowed down demand. On top of that, shortages have become normal to potential buyers and that is keeping them away unless they really need a car.

But there are still people who need a car now, and the prices can be alarming. However, those with a car to sell might have an advantage in this current market. Dealerships are trying to get as much used inventory as they can, so you’ll probably never get a better price for your old car than now. The money you receive can then go toward a new-to-you car.

Overall

So, what more can you do? We already mentioned that you can get a high price if you’re selling or trading in, but really the time to get your new-to-you vehicle is whatever works for you. If that’s now, then you can use your trade-in to get the best deal possible. If you’re going to wait, it’s important for you to know that it’s hard to predict future auto prices, especially when global supply chain issues keep getting in the way of automakers. The market will calm down at some point but know that it may take some time. So, if you’re going to buy now, make sure you do your research on current deals and vehicle prices, and consider multiple kinds of cars so you can increase the chance of saving money.

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