When the pandemic started there was a dip in used car prices, and predictions that they would drop further due to the Hertz bankruptcy. But this has not happened, and used car prices are actually relatively high these days. My understanding is that this is due to a slowdown in new car production, which has limited the supply of used car trade-ins.
My question is whether the conditions which produced this situation (i.e. the production slowdown, or whatever else) have eased up and that prices are therefore likely to decline in the near terms, or whether the conditions have remained the same or even exacerbated.
New car production is just now getting fully ramped up for the 2021 models. Suppliers are back up to capacity as well. Unless the economy nose dives there should be plenty of cars to choose from come tax return time. Car companies aggressively want and need your business.
As there is no factual answer lets move this from GQ to IMHO.
In my city there is a HUGE dearth of new cars on the lots which will no doubt lead to a total sellers market for cars of any variety for the next while.
That’s one reason for high used-car prices. But also new cars are very expensive, with the average new car price at about $39,000.
I’m currently in the market for a new (2022) car. I know exactly the car I want, but due to the chip shortage there just aren’t any at the dealer.
So I was checking out used late-year cars of the same model, and they’re going for the same price as the new ones that don’t exist.
I’ve decided to hold on to what I’ve got, for now.