And the rising prices don't seem to be stopping.
When Covid-19 mania engulfed the world, used car prices jumped to new highs. Dealerships ran low on new inventory as factories couldn't produce the volume they needed. Supply could not meet demand and people were often selling or trading-in their used cars for more than they bought them for. As the restrictions eased across the world, used car prices were almost expected to go back down in price like other things had. Such was not the case. According to this AutoBlog article they cite Manheim Used Vehicle Value Index as reporting the used car prices have jumped an incredible 3.7% in February alone. What should be noted is that the market flat-lined for a while and decreased around October of 2022, as noted by CarGurus. And has started to creep back up again, starting in February of 2023.
So what does this mean for the future? From analysis, it appears the market will continue to rise, but at a slower rate. To note, repair garages local to this author are reporting more people are wanting their vehicles repaired at higher costs, as opposed to buying other cars to replace them. This is generally interpreted as a low inventory on cheaper vehicles is causing a spike in high dollar repair bills. Many contractor and business fleets are suffering due to lack of work vans/trucks in the used market right now. The cost is very high comparatively for a new work van/truck, as new car prices have risen alongside the used prices.
If you are looking to trade-in your vehicle, here are a few sites we recommend to determine your vehicle value.
For classic cars, Hagerty is our top pick
We hope this is a help to you as you navigate this crazy car market.
Have a great Thursday,
The CarKeeper
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