When will used car prices drop?
According to Cox Automative, their Mannheim Used Vehicle Value Index indicated that prices of wholesale vehicles have decreased about 6% since January of this year. While the prices are higher than last year, due to inflation, prices have been steadily decreasing since the beginning of 2022. Find out when used car prices will drop and discover the latest trends in used car sales and external impacts that cause used car prices to decrease.
What causes used car prices to drop?
There are a few things that can cause used car prices to drop including the state of new-vehicle production, inventory, and recovery after a global event, like COVID-19. The simple theory of supply and demand will have an impact on car prices. If there is an increase in new-vehicle production this will have an indirect impact on used car prices. The more selection there is the better the discounts and prices will be for consumers. This rule also applies to used car inventory. Another factor that is unique to 2022 is recovery after the COVID-19 pandemic. The pandemic impacted prices around the world, showing a 30% increase in car prices in 2020 and 2021. Now that most of the world is in recovery, prices are starting to resemble normal levels and have decreased in price.
When will used car prices decrease?
Used cars are already seeing a decrease in price. Thanks to COVID-19 recovery and an increase in production and car inventory. If the trend continues used car prices will only be getting cheaper.
It is also important to take the recent inflation rates into account when purchasing a used car. The price of the car might be lower, but if you are financing it, you might be paying more via interest in the long run.
Online auctions offer the best value
Taking all these factors into account a good alternative to purchasing a used car for a cheap price is participating in online auctions. Sites like AutoBids offer many different price points and a wide array of different vehicles. Want to learn how to get the cheapest car possible? Check out our article offering tips on getting the best deal on your next vehicle purchase. By bidding in an online car auction you have more control over your budget and have many options at your fingertips. All you have to is create an account and you can start bidding today!