If you’re considering trading in a vehicle though, this might be a great time to do so.
WCPOreported that a man was able to sell his two-year-old
Teslafor just two dollars less than the original price. He isn’t alone either, as many used vehicles are even selling for more than the original sticker price.
Car shortages have shifted the market
When you purchase a
new car, it typically loses a lot of value because of car depreciation. However, right now, brand-new vehicles are not as easy to come by.
Every stage of car production has been affected by the pandemic, which has led to a shortage of new cars. At the same time, there’s a high demand for cars. More people are traveling and returning to in-person work and need cars for transportation.
This is where car owners can make their money back. Dealerships are struggling to keep up with the demand, and if new cars are unavailable, used cars in good condition are an attractive alternative.
2019 Tesla Model 3 sells for its original price
In Maineville, Ohio, a man traded in his 2019
Tesla Model 3for $39,997. He had purchased the vehicle for $39,999, which means he got to drive a Tesla for two years and essentially break even. During the two years, he put 15,000 miles on the Tesla.
This sort of deal sounds too good to be true. However, in the current car market, used vehicles are selling for close to their original value.
As dealers try to keep their lots filled, they’re paying top dollar for certain vehicles. Luxury cars like Teslas are fetching high prices right now. Additionally, in-demand vehicles like pickup trucks and SUVs can be traded in for competitive prices.
This isn’t expected to last forever
It would be perfect if every vehicle you purchased could be sold back a few years later for the same price. Unfortunately, this will likely not be the case for very long. As the world reopens, more vehicles are being produced again, meaning that car lots are not as desperate for vehicles to sell.
Another important caveat to note if you're considering trading in your vehicle is that not every car is fetching prices like the Tesla. Basic sedans don’t have as much demand, even when the shortage of vehicles was at its worst.
If you own a luxury vehicle like a Model 3 and are considering trading in, there’s no time like the present. The market will likely start to return to normal in the coming months. In the meantime, if you plan on selling your vehicle, you might want to monitor prices to see what your car could be worth.
Trading your vehicle in at the right time can come down to keeping track of the market. On the other hand, if you’re purchasing a new car and want to find affordable coverage,
Jerrycan help simplify the car insurance-buying process. It takes 45 seconds to sign up, and Jerry will use artificial intelligence to compare quotes and find you the best coverage at the best price.