Used Car Prices Going Up Again (Except EVs)

  • February 2, 2024
  • 3 min read

The Current State of Used Vehicle Prices

  • The Impact of Auctions on Used Car Retail Prices
    So if you’re in the market for a used vehicle, don’t expect any deals anytime soon, according to Auto Remarketing. They closely follow auction prices, and the prognosis is that used car retail prices are not likely to soften much further. Despite a slight decrease in the last few months, there’s still a shortage of inventory for good, late-model, low-mileage used vehicles. As a result, prices are holding up, and some auctions are even witnessing a slight increase.
  • Exceptional Case: Electric Vehicles (EVs)
    The only exception to the general trend is if you’re open to the idea of an electric vehicle. Used EVs are experiencing a sharp decline in prices. The supply of traditional cars and trucks is increasing because of reduced demand, leading to a surplus of used EVs. Gasoline vehicles, on the other hand, are facing a shortage in supply as more people prefer them. If you’re looking for a good deal, considering an electric vehicle might be a strategic move.

Factors Affecting the Used Car Market

  • Effects of Recent Events on New Car Manufacturing
    The recent resolution of a pending strike has relieved some pressure on new car manufacturing. However, it has put a dent in used car prices. The strike temporarily impacted new car production, contributing to the existing shortage of used vehicles. This, coupled with the overall imbalance in supply and demand, has created a challenging scenario for those in search of reasonably priced used cars.
  • Residual Effects from 2020–2022
    A more significant issue influencing the current used car market is the aftermath of the 2020–2022 period. During this time, factories were producing fewer cars due to the COVID-19 pandemic, and supply chains faced disruptions. This has resulted in a three-year backlog of used cars entering the market. Some of these vehicles also have higher mileage as people were forced to drive them for extended periods, given the challenges of purchasing new cars. The effects of this period are likely to persist for a while.

Considerations for Potential Buyers

  • Higher than Expected Prices for Non-EV Used Cars: Unless you’re specifically interested in an electric vehicle, be prepared for the possibility of higher-than-expected prices for non-EV used cars. The combination of factors, including the recent strike, the residual effects from the pandemic years, and the increased demand for gasoline vehicles, has contributed to the current pricing landscape. It’s essential to be aware of these dynamics when exploring the used car market.

If you’re actively observing the used car market in your area, we would like to hear from you. Let us know what trends you’re noticing, whether there are any exceptions to the general patterns, and how local factors may be influencing used car prices in your neck of the woods. Your insights could provide valuable information for others navigating the challenging landscape of the current used vehicle market.

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