Our Fears Coming True: Used Car Prices On the Rise. Again

Our fears are coming true, and the price of used cars is set to start rising yet again. The used automotive market had hoped the falling price of used cars would continue to fall. Sadly, the opposite is more likely. What will used car prices look like in the coming year? Let’s take a look and dive into what the experts are saying.

As of right now, the price of used cars is set to increase. While 2022, especially the latter part of the year, saw a steep decline in the price of used cars, prices for our much-beloved used vehicles are going to rise to start now. According to Manheim Public Auctions, an organization known for auctioning used cars frequently, the cost of used cars has begun to rise again, and they are not expected to stop rising sadly. While other experts had expected prices to decline steadily through the year, their predictions might be proven wrong if something doesn’t change.

Over 43 million used cars were sold in 2021. America loves used cars, and any change in the market affects millions of Americans each year. What comes next now that used car prices are climbing?

False Hope

In 2022, the price of used cars fell a lot. This came as a great relief to many Americans, considering the price of used cars hit record highs in 2020 and 2021. With prices falling and falling fast in late December of 2022, consumers had hopes that prices would continue to improve over the course of 2023.

Statisticians and auto experts foresaw a drop in the price of used cars in 2023, but that is just not the case anymore. As of right now, prices are rising quickly. Consumers and sellers of used cars have a lot to think about right now.

What’s the Problem?

Many consumers and experts are scratching their heads, trying to figure out where everything went wrong. Evidence for used car prices skyrocketing can be traced all the way back to when the pandemic started. With a halt in production due to Covid-19, the world saw a shortage in car parts, particularly car computer chips.

Without these parts and these all-important computer chips, automakers were unable to get cars out on the market for consumers. With low supply and high demand, prices, even for used cars, shot through the roof. It wasn’t until 2022 that prices began to stabilize, but now things have seemed to shift in the wrong direction.

What Should Consumers Do?

This is a very important question right now. The busy season for the used car market is just around the corner, and it’s mainly due to consumers getting their tax refunds. With money in peoples’ pockets and avenues to spend it, consumers will be turning to the used car market to buy. But is right now the right time to buy a used car?

If you are thinking of selling a used car, right now might be the best time ever. If you are thinking of buying a used car, you might want to use some caution. With prices on the rise, consumers might want to think about holding onto their money until things cool off. On the flip side, consumers might want to get in on the action before prices rise even more. What side are you on?