People across the USA are surprised at just how much their used care are worth. These companies are even willing to buy your car for more than it’s worth brand new.
Between April and May, the price of pre-owned cars jumped to $25,500 from about $20,000 last year, hitting an all-time high. In June, used cars and trucks prices rose by 10.5%, marking the highest price increase for any consumer spending group in America.
This insanity boils down to the simple law of supply and demand. The demand for used cars in 2021 outweighs their supply. As a result, we’re seeing an unprecedented increase in pre-owned vehicle prices.
However, the main reason for limited inventories and increased interest in used cars is far more complicated. Keep on reading to learn more.
Is It the Right Time to Sell Your Used Car?
The new and used car markets are deeply intertwined. This means that economic challenges faced by one segment of the industry tend to trick down into the other segment.
Thanks to the shortage of microchips, the production of new cars has significantly reduced. In fact, new vehicle inventory in America in June declined by 54% compared to the same month in 2019.
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Because of this, pre-owned vehicles prices have hit an all-time high. This makes lots of sense, considering less vehicles in the market equals higher price tags even if the demand remains the same.
The effect of chip shortage came to light in June when new cars production declined by over 50%. This shortage in supply has seen the market losing customers to the used vehicles market. As a matter of fact, customers willing to spend huge sums of money on brand-new models are driving up used cars prices.
According to analysts in the automotive industry, the shortage of microchips might continue for the years to come. But this doesn’t mean the current trend on used vehicles will continue for long.
Steps You Should Take When Selling Your Used Vehicle
The streak of skyrocketing prices of used vehicles has encouraged many pre-owned vehicles owners to place their cars on sale. If you’re among these car owners, here are some tips to help you sell your car.
First, determine the value of your used vehicle by considering different factors, including model, brand, mileage, and the manufacturing year.
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Address Mechanical Issues
Before putting your used car on the market, check if it has any mechanical issues and fix them. Keep in mind private parties and auto dealers want a vehicle in excellent condition before making a purchase. However, some dealerships have skilled experts and technology needed to handle mechanical issues at a lower cost.
Show You Care
As we said above, dealerships and potential buyers want a used car that runs in faultless condition. So, reassure them about the state of your vehicle by presenting them with maintenance and repair documents.
Patience is a virtue, especially for automobile sellers. The used cars market is still young, and growing at a slow pace, so take your time. Don’t rush for the first offer you receive from a potential customer or dealership.
Usually, the offer made by a dealership remains valid for some time. Use this time to find and compare offers from other dealerships. Only settle for an offer that better suits your needs, whether it’s a direct sale or a trade-in.
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List Your Vehicle Online
We live in the world where everyone is online, so it makes sense to take advantage of online marketing to land the best deals.
You can create attractive ads that convert or post your used car in various online marketplaces. Make sure you used wonderful photos because it builds confidence in the potential buyer’s mind. Also, it helps your vehicle to stand out from other used cars for sale online.
Used Cars Selling for More Than New Ones
Factors like the pandemic and the drop in microchip production have seen the prices of used cars surpassing those of new vehicles. Based on information from iSeeCars.com, here are ten used car models selling more than their new counterparts.
- Honda Civic – New for $26,331 and used for $27,058
- Honda Odyssey – New for $37,600 and used for $38,050
- Subaru WRX – New for $34,485 and used for $34,600
- Toyota Tacoma – New for $37,900 and used for $39,900
- Kia Rio – New for $17,380 and used for $17,470
- Dodge Charger – New for $38,800 and used for $38,900
- Hyundai Palisade – New for $44,000 and used for $$45,356
- GMC Sierra 1500 – New for $54,200 and used for $57,600
- Mercedes Benz G Class – New for $182,600 and used for $190,080.
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The high prices of pre-owned vehicles have significantly boosted the used car market. This presents car owners with an excellent opportunity to make some extra bucks amid this pandemic.
We don’t how long the prices will take to level off. But as long as there’s a shortage of microchips, the used car industry will continue to thrive.
But who knows! Maybe new cars inventories might progressively increase in the few months, affecting the pre-owned vehicle market.
So, if you have a used car you wish to sell, now is the right time. Take advantage of this shift in the automotive industry. You might never get a chance like this again in your lifetime.