The Expert Podcast

• Used Car Market Trends:
  • 2021 saw a significant increase in used car values, with many used cars worth more than new ones from 2-3 years prior.
  • Blackbook reports a 28% increase in prices for 8-16-year-old vehicles in 2021, with dealers seeking older cars to meet demand.
  • Even cars from 2008-2010 are still fetching high prices, as demand for older vehicles continues.
• Impact of Older Vehicles on Pricing:
  • Dealers are turning to older vehicles (8-16 years old) to fill inventory, which leads to high prices, even for cars with higher mileage.
  • Example: A 2010 Toyota Tacoma may be priced at $14,000-$15,000, while a 2015 model might cost around $20,000, with only a slight price difference despite newer models.
  • The current sweet spot for used car prices is in the 5-8 year-old range (mid-teens models).
• Market Outlook for Future Years (2023-2025):
  • Due to lower new car inventories in 2021 and 2022, there will be fewer used cars available in the future (5-20% fewer).
  • For those planning to sell a car in the next few years, now may be a good time to sell older models (2004-2011) at higher prices.
• Electric Vehicles (EVs) and Hybrids in the Used Car Market:
  • Used hybrid and electric vehicle prices saw a huge jump of 40%+ last month, with EV prices up 46.9% and non-electric cars up 34%.
  • The rise is attributed to higher fuel prices and increased adoption of electric vehicles.
• Battery Condition in EVs and Hybrids:
  • Unlike traditional cars, where mileage is a good indicator of condition, EVs and hybrids require specific attention to battery health.
  • Factors affecting battery life include charging cycles, temperature conditions, and how the car is used.
  • The battery is a significant part of an EV’s value, so it’s essential to check its condition before purchasing.
• Takeaway:
  • The used car market is seeing a continuous rise in prices, with older and electric vehicles particularly in demand.
  • Buyers and sellers should plan accordingly, considering battery health for EVs and adjusting expectations based on supply and demand trends.