Will There Finally Be a Respite from Extreme Used Car Prices?

Ru Chen
· 3 min read
Most people know by now that it’s a terrible time to buy new cars because of the global chip shortage.
The demand has led buyers and sellers in the industry to resort to
used cars
. Used car prices have been rising through the roofs and reaching for the stars—which is terrible for those who like their cars to be affordable. But lately, there are crucial signs of prices dropping!
Used car prices are finally coming back down to earth.
reported that wholesale used car prices (what car dealers pay for the cars they sell to customers) fell in the first two weeks of July. Used vehicle inventories at dealerships have also been increasing since then.
Increases in supply lead to cheaper car prices, which will be even more visible in the next few months.
pointed out that prices have already dropped by as much as $2,000 for a used car over the course of July.
Paired with the increase in new car inventory as the frenzied demand for cars is cooling off, this is great news for car buyers.
MORE: Think Twice Before Buying a New Car Right Now
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Wait before buying a new/used car!

The longer you wait, the more you will save. Unless you need a vehicle for an urgent reason, you should wait for the prices to go down. And experts do expect them to fall relatively soon.
This price problem has been record-setting. Used cars passed the $25,000 mark in June, and new car prices have been increasing since the start of COVID-19 as well. But these trends won’t last forever.
If you have to buy a car, consider one of the cheaper used car options. Avoid sports cars and pickup trucks, which have surged in prices the most because of their popularity.

If you’re a prospective seller, sell now!

On the other hand, if you have a car with high mileage, you should definitely get rid of it while prices and demand are still high.
Car and Driver
reported that car owners should take advantage of this volatile but lucrative market. If you’re thinking of switching cars in the near future, consider selling earlier than later, while the prices are still high. You can make thousands of dollars!
Escalating prices don’t last forever. When the market bubble pops, as bubbles do, used car prices will plummet. You do NOT want to be there for the nosedive!

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No matter what happens in the automotive market, car insurance remains very important. And expensive.
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