Your Used Car Might Be Worth More Now Than a Year Ago
Ever since the pandemic broke out, the word “unprecedented” has become widely overused. The “new normal” isn’t anything like we expected it to be – even in the automobile world. What once was considered a depreciating asset is now increasing in value even after a year or two of use!
Why Are Car Prices Soaring?
Used car values are soaring higher than we’ve ever seen them. The number of people with year-old trucks or SUVs worth more now is just unbelievable. Even though cars are traditionally known to be depreciating assets, some people are luckier than others.
These record prices started back in March 2020 when the world was still navigating the dos and don’ts of pandemic life. Anticipating a recession that would halt the purchase of new vehicles, car companies pulled down their factory shutters.
They also canceled supply orders from chip-makers, fearing an extensive slump that never came about. Instead, to keep their market going, these chip-market diverted their business towards phones, video games, and computer manufacturers – an industry that continued booming during the pandemic.
We see now a classic economics lesson playing out because now that car manufacturers are demanding chips again, there isn’t enough to go around. It is estimated that the chip-making industry will take up to June 2021 to catch up with the soaring demand. Until then, since car manufacturers remain unable to meet consumer demands, the prices will remain higher than ever.
What Is Consumer Behavior Like At This Time?
Currently, more than 40% of consumers are willing to buy vehicles for up to 12% over their sticker price. At the same time, there’s a whole other spectrum of consumers that have shifted to the used-car market.
When there’s a shortage of products in the market, customers go looking at a year or two old models to fit their needs. Many dealerships depend on auctions to source used cars, but stay-at-home orders have been preventing that since last year.
How Much Has Vehicle Prices Increased?
According to a reputed automobile search engine, iSeeCars, used car prices have increased by 6.6% since the start of the year. In January 2021, the average price stood at $2,522 and is now $24,009. A year ago, the 2019 Nissan Rogue SV that was listed for $17,000 has now swelled to $21,000 – a 17.3% increase. Similarly, the 2018 Ford F-150 XL that was listed for $27,000 last year now costs $34,000 – a whopping 25.4% increase.
The market has never been better for used cars. If you’ve been looking to upgrade, we suggest you head on down to your nearest dealership and see what can be done. Act now before you miss out on this amazing opportunity!
More inFinancial Advisor
Here’s All You Need to Know About The Upcoming Audi Q4 E-tron
Watch out, Audi fans – it looks like you’ll again be in a tight spot in the upcoming year! In 2015,...October 27, 2021
Can Ferrari Laferrari Break The Record of The Most Expensive Supercar?
It looks like a record is about to be smashed! The Ferrari LaFerrari is all set to break the auction record...October 27, 2021
Lucid Ups Its Game By Revealing DreamDrive – “An Advanced Driver Assistance System”
Ever since electrification changed the face of the automotive industry, automakers have been trying to adapt to the new normal. Some...October 25, 2021
Massive Vehicle Recall By Tesla Surprises Car Enthusiasts
Imagine you’ve spent two to three years designing a car, and when you launch it in the market, you get a...October 21, 2021
Which Cars Are the Safest and Most Affordable for Young Teens? Make the Car Search Easier For You!
Ever since the novel virus engulfed the world, lots of things began to change; some for the better, some for the worst. People...October 14, 2021
Stellantis All Set to Transform Turin Plant Into Center for Building EVs
Looks like Italian roads will soon be flooded with EVs! Multinational automaking corporation, Stellantis (currently situated in Milan), is planning to...October 14, 2021
Introducing The Ineos Grenadier – A Step Up From The Jaguar Land Rover Defender
A true businessman knows an opportunity when it’s right in front of them – and that’s exactly what Jim Ratcliffe saw...October 4, 2021
BMW Tests The New X1 On German Roads
Life is full of mistakes, some huge and some ignorable, and everyone makes them sooner or later. But that doesn’t stop...October 2, 2021
The Electric Car Industry is Reaching New Heights in China
The increasing issue of climate change has become a serious concern for everyone. States are taking measures to reduce their carbon...September 19, 2021