You might think it’s the prime time to sell your care if you’re working from home with work from how mandates to staying in. The used car market has shifted and you might think it’s a good time to sell your car but here are some things you will need to know about the new landscape. Knowing used car pricing is going to be key.
Driving less so the demand for new cars is less
People are driving less so that makes for less of a demand for used cars. The pandemic may have you working from home on and off for years. This also means there may be fewer cars on the road too. In areas of Los Angeles, California, and San Francisco California traffic dropped a 70% combined in two of the busiest cities in the United States. It seems gone are the days of the low down payment used cars now.
So there is one thing safe to say with this pandemic is that people weren’t driving cars and still aren’t driving cars. So that also means car dealerships are not ordering as many cars for their car lots as before and overall vehicle production is way down.
Now that people want the demand for new cars, automakers can make them fast enough and that’s what is making the price hike is the shortage of new cars on car lots. Hopefully one day it will come back. But one thing is for sure right now is the high prices on vehicles available right now. It’s crazy in some areas.
High profits for car dealerships
And now because car dealers are now seeing the fat profits from car prices being so high and the demand is there but everyone is low for car dealerships the dealerships see no changes to be made when inventory is low and prices are high. It’s a win/win for car dealerships right now. There is no real reason to get more car inventory when the profits for local used car lots are high. So the used car price you see might be the best you can do for a used vehicle for a while.
You honestly will see used car prices drop when supply chain issues get fixed and you see that car dealerships will be filling their new and used car lots again to the fullest. And right now car dealerships don’t want to push other car dealerships out of money by bringing in new cars to reduce the price of used cars when there is cash to be made. But it’s a time will tell when the market breaks for used cars.
When will automakers push for more new cars?
Automakers can push car dealerships to sell new cars but when will that demand happen we don’t know. But one thing is for certain people run the car market and push for demand so when will that happen? Your kind of see it now a little bit with people going out and wanting to buy new cars again.
The smoothes way to sell your car if you want to upgrade is to sell it back to the car dealership and the best part is all the paperwork and test drive stuff they will have to handle. The money might be a little less but you won’t have to deal with the headaches so you have to decide what option you want to take on.
What will the car market do for the future?
It’s unclear what automakers and car dealerships will want to do when the market breaks for used car profits. Only those two things will tell you how long this will last. Hoping not for long if you want a new car or a decent affordable used car but something to be thankful for is auto loan rates are low and if you have used car money is there to be made. We don’t know for how long.