About 39.5 million used vehicles are bought every year in the United States. In comparison, only about 17 million new vehicles are bought annually.
Used cars outsell new cars mainly because they’re cheaper to buy and insure, and don’t depreciate as fast. If you’re in the used car market, whether to buy or sell, it’s prudent to be armed with the right information. This market is constantly changing, especially when it comes to used car prices.
In this article, we’re fleshing out expert insight on what to expect once you enter the market. Read on!
1. Used Car Prices Are Cooling Off
After the COVID-19 pandemic struck, used car prices increased sharply. This increase was fueled by supply chain and manufacturing disruptions caused by the coronavirus.
At the peak of the pandemic in 2021, the median price of a used car wa6 $24,000, up from about $19,000 in 2019.
As a seller, this is good news. It means you’re more likely to get more money today than you’d have got three years ago – for a depreciating asset!
As a buyer, it’s not all gloomy. In 2022, used vehicle values are gradually decreasing, but don’t expect them to hit pre-pandemic levels just yet.
2. Fuel-Efficient Vehicles Have the Strongest Demand
In the used car market, you’ll find all types of vehicles, from small commuter cars to luxury sedans, vintage classics, big SUVs, light trucks, and whatnot. Electrical vehicles are also becoming a common occurrence, but cars with an internal combustion engine carry the day.
Different kinds of used cars have varying levels of demand. In 2022, fuel-efficient vehicles are selling like hot cake.
As you might know, the price of gas has recently hit record highs in the U.S. and the economy could be falling into an economic recession. Facing these circumstances, many prospective car buyers aren’t just looking for used vehicles. They want to buy a used car that’s fuel-efficient.
Yes, EVs are available in the used car market, but their prices are on the higher side and many buyers have reservations about the availability and reliability of the charging infrastructure.
3. Light Trucks Are Seeing Lots of Action, Too
There’s a reason the Ford F-series is the best-selling vehicle in the US over the past four decades. Americans love light trucks – brand new or used!
If you’re looking to buy a light truck, expect bidding wars and higher prices. And if you’re looking to sell, it won’t be long before you have a buyer. Plus, you can always use auction sites like Bidlane for a quicker sale.
The Used Car Market Is a Seller’s Dream
The U.S. used car market has never been hotter. Used car prices have been on the rise in the last two years, but as COVID-19 gradually becomes a distant memory, prices are starting to decline. Fuel-efficient vehicles have a great demand, as do light trucks that can haul a trailer.
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