The Surprising Surge: What’s Driving Up Used Car Prices?
Download MP3Topic Overview: Explore the latest trends in used car prices, the impact of recent market shifts, and what this means for buyers and owners alike. Are used car prices really going up? Is now the time to buy, or should you hold off? Find out in this in-depth discussion.
Used Car Price Trends:
- Used car values have dropped slightly from pandemic highs.
- According to Cox Automotive, wholesale used prices rose by 4.3% from January to February 2023, marking the highest month-to-month increase since 2009.
Implications for Used Car Owners:
- If you own a used vehicle, its value is likely higher now, which could make it a good investment.
- However, be cautious: repairs, replacements, or damage could be costly, so ensure your insurance coverage matches your vehicle’s value.
Considerations for Used Car Buyers:
- A newer model may not be much more expensive than a 2-3-year-old car.
- High monthly payments are common due to rising interest rates.
- Weigh the costs of maintenance and repairs on used vehicles, as these may offset any potential savings.
New Car Purchasing and Financing:
- Average new car price: $46,000, with monthly payments around $1,000 for a five-year loan.
- Six or seven-year loans are available but not recommended; stick to four or five years if possible.
Leasing and Lease Buyouts:
- If your lease is ending, consider buying out the lease, as it might offer a better value than current used car prices.
Electric Vehicle Incentives:
- EVs may offer up to $15,000 in federal, state, and local incentives.
- These incentives could make EVs a more affordable option despite higher upfront costs.
Older Car Market:
- High-mileage, older cars (100,000 miles) are still pricey, often exceeding $20,000, resulting in monthly payments close to $500.
Engagement: Share your experiences! What are you seeing in your local car market? Are you planning to keep your current car longer or considering a new purchase? Let us know in the comments!
