Are used car prices really that high? When will they ever drop so that it’s a little more affordable for the consumer?
Capitalist economy = laws of supply and demand.
I wouldn't expect to see much movement this year as dealers are short on new car inventory so used car prices are up. On average, they are up $2000 from last year at the current time.
Market supply & demand, is the name of the game..
Add in tax refunds and stimulus payments - means more people are probably in the market for a used car with cash in hand.
Not a stimulus when NINE CENTS of every DOLLAR is what we get. And its OUR money. But you are right. People will go out and buy used, raising the price. I was looking before the virus thing. Decided to wait. Now same cars are more expensive. With the computer chip shortage, the new car supply is low.
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Scotty has discussed this recently. There's a number of factors at play, including the chip shortage, reduced production during the pandemic, increased hi-tech systems in vehicles. The rising cost of new vehicles and their reduced availability means more folks go to the used market, increasing demand, reducing supply and therefore racheting up prices.
I agree with the above, but note that the price inflation seems to be highest on trucks and SUVs - if you are in the market for a sedan, you can get more transportation for your money.
No one really knows. And I am in the same boat as other members looking to buy a car now, but my advice is if you absolutely need a vehicle then you almost don’t have a choice but to get one now. If you can wait (I know in my case I can hold off for maybe another year, but not too much beyond that), then do so. Also, if you see something you like and it checks all the boxes including a PPI (and you have the financial means), jump on it before it gets snatched up. It may only get worse before it gets better.
BTW, if I could predict the future then I should be playing the Lotto. 🙂
Used car prices did not increase because of chips. I think they mainly increased due to slower economy, unemployment etc. Used car prices will only recover when business restrictions lift and the economy recovers, which could be a very long time.
Basically prices will go down when supply exceeds demand - economics 101. When that will be is anyone's guess, for now it's a seller's market.
Scotty, when are the used car prices going to go back to normal?
If new car production increases, used car prices will relax some. They will never go back in time. There will always be deals, though, and patience, knowledge, plus perseverance will continue to yield a more desirable outcome.
No time soon.
It’s anybody’s guess right now, if it even goes back to normal - no guarantees it ever will, but it could certainly soften. It’s been frustrating for me, too, as I was hoping to get my next car this year, but now going to wait longer (well into 2022 at the least).
Not for a while
there are still some good private sales but you have to know exactly what you want and be ready to jump
i called about a tundra that was listed for 42 minutes and was 5th in line lol
Yeah...they are that bad now. Hard to tell when they'll start to get back to normal with so many factors causing the increase due to the pandemic. I just checked for the heck of it, and the same 08 Highlander Limited 4wd 180k miles are all going for at least $2000 or more in my area than what I paid for last summer...That's just nuts.
Basic supply and demand... Private Party sales seem to be very expensive compared to dealers.
The US is still good there are countries where used car dealers are buying all the new cars (which already cost double what they are in other countries due to taxes and import complicated fees) and selling them used for MORE than the new price. Prices have tripled in a few years in some countries, and I doubt they will go down. They won't drop any time soon because there isn't a reason for it. If more people start selling cars, they will list them high just like the previous listings, and it won't go down much.
LOL. You mention supply and demand, but you don't understand it.
>"If more people start selling cars, they will list them high just like the previous listings, and it won't go down much."
When supply exceeds demand, and you don't lower your price, then you won't sell anything.
@mountainmanjoe
Er, wrong, I do understand that. I'm just explaining the anomaly of supply of demand in the private party market. My explanation skills may not be the best but I think others understand what I am talking about.
what anomaly?
"They won't drop any time soon because there isn't a reason for it. If more people start selling cars, they will list them high just like the previous listings, and it won't go down much."
anomaly of supply and demand in the private market if that makes sense
It's a sellers market right now. Cars are in high demand. That's why prices are high. When demand goes back down, the prices will fall again. If people list them high, nobody will buy them.
I think you're turning this into another +1mpg thing.
@mountainmanjoe Yes that ones on me waaay overcomplicated
good memory btw
Hello, I am aware that car prices - especially used car prices have increased significantly due to the microchip shortage. Is this trend likely to continue, or will prices go back down again? If so, when will they go down? What will car prices look like in August? Thanks!
Used car prices will go down "theoretically" if the market demands it. I don't put stock into that though as I don't believe a capitalist economy works in a first world country. So, my guess is if prices come down it's probably going to be years, not months. New cars would definitely have to come down first. Otherwise everyone will still be buying up the under $10k cars and prices will remain inflated.
The amount of pure salvage title/rebuilt title garbage that is out there for sale is asinine.
These are the jalopies they drive in socialist Cuba:
The market will normalize eventually. But it will take time because production is no longer just a national problem. It's a global process. That, and consumer behaviour is influenced by local government. I predict that things won't improve under Biden, so maybe next administration.
They are never going back to normal. The dollar has inflated bad. Our Uncle Joe office has been doing its best to come up with excuses to cover up.
yea but i remember scotty said we will get screwed if we buy cars now so i want to know when is the golden time he said to wait for to buy a car.
@end no one knows, not even Scotty. All he has said is to wait as now is not a good time. Then again, if you absolutely need something now, then what can you do?
I am a teen that wants his first car and im getting my full license janurary 2022 and i really want a car.
Used car prices will start to go back to normal in 2025 at least.
