Used Car Prices Climbing: What Should You Do?

The used car market is heating up. Is now the time to buy before used car prices get even higher or sell while prices are favorable?

It has come as a shock to most of the automotive industry that the price of used cars is rising. Following a favorable end to the 2022 year, experts and consumers hoped prices would continue to fall through the Spring. But with such high demand for used cars and prices rising for new ones, the used car market has seen a spike in price tags over the last couple of months. Another factor is tax cut season. Typically, vehicles, both new and used, get more expensive when people get their tax breaks, but it seems that that time has come early, and consumers and sellers alike have a lot to think about. With prices ramping up, now might be the perfect time to buy or sell, but let’s not forget that with high reward comes high risk.

Are you thinking of buying or selling? With the automotive industry stamping out fires left and right, now might be the time for you to snag a great deal. Keep reading to find out more about what is happening in the used car market.

Weren’t Prices Going Down

Prices were, in fact, going down. At the end of 2022, the price of used cars was going down drastically. Consumers and automotive experts theorized that prices would continue to fall through the 2023 year, but they were wrong. The cost of new and used cars skyrocketed during the Covid-19 Pandemic. It was in late 2022 that things began to settle down, but it looks like dealerships and consumers alike will be hunkering down for a long Winter of high prices and even higher demand.

While it was first surmised that prices would fall this year, things have totally flipped. Now, prices are expected to rise steadily until the end of this year, or at least until demand settles down, which is a shot in the dark at this point in time. This turn of events has consumers asking: What do I do now?

Low Inventory and High Demand

Right now, there are not enough cars to go around. The demand for new cars is high, and the demand for used ones is even higher. This has caused the price of both to increase, but it has also changed the culture of buying cars. Now is one of the most stressful times to buy a car, and it’s almost impossible if you are not ready and prepared.

With prices at a volatile influx, consumers have to act fast. If you are looking to buy a car right now and you can’t afford to wait any longer, you can’t hesitate. Right now, if you are given a reasonable price on a vehicle you think you want, you should take it because if you don’t, the next person will.

What Should You Do Now?

What should you do? Well, you could do nothing and wait for prices to go back to normal. Or, which might be better, you could take advantage of this moment. With prices going haywire, you might just score an awesome dealer. Or, better yet, if you have a used car, maybe you should sell it and make way more than it’s worth. Regardless, there are still good deals on used cars. You just have to look extra hard for them.