The past few years have been increasingly strange for… Well. Everything. Employees are working from home, gas prices have skyrocketed and air travel has spiked. Unfortunately, the used car market seemed to take one of the heaviest blows during the pandemic. Used car news is becoming increasingly positive, though. It seems as if we are on track to returning to a new normalcy (which may sound contradictory, but it makes sense if you have experienced the last few years).
At Sell My Car Colorado, it’s our job to keep up with the used car market so you don’t have to. That’s one of the great things about what we do! Here is a quick roundup of used car news in April.
Used Cars Prices Dropping… Slowly
The average price of used and new cars saw a dramatic increase over the past two years. While we would like to have a positive cause, something involving a transfer to more eco-friendly, we all know who is to blame. COVID-19 crushed the car market for buyers. From supply chain issues regarding new car chips and parts to economically-impacted people asking for more profit, used car prices were at an all-time high. According to a Bloomberg study, U.S. used car prices surged 41% year-over-year.
Furthermore, this increase didn’t come to a halt in 2022. In fact, new car prices jumped 12% in February. Simply put, it’s been a tough go for anyone trying to buy a car. But we are here to report used car news, so something must be amiss, right?
Have no fear, fellow car searcher. Used car prices are beginning to slope downward, even if the slope is less than a bunny hill.
According to Kelley Blue Book, the average used car sold for $27,246 in March. This decrease is $362 less than in February and close to $1,000 less than last December.
Sure, an extra $300 bucks isn’t going to make or break a car sale, but it’s a start. We are finally seeing a decrease, even if pocket change
It’s Time to Sell
If you are in the market to get rid of your used car, now is the time. Here are few reasons to sell ASAP.
There’s a bit of psychology behind the car-selling process. Consequently, when car prices begin to drop, buyers are more likely to pounce on opportunities. This goes for any level of decrease. While the used car market is declining slowly, it still seems as if the best time to buy. Prices are less than last year, if only by a small margin. This may seem skeevy, but it is business. As of right now, you can sell your used car for max profit and the buyer will look at it as a good deal (in correlation with the past two years). That’s just how supply and demand goes.
Furthermore, spring and summer are the best times to sell used vehicles. If you are planning on selling a convertible or summer-related vehicle (i.e. Jeeps and trucks to pull equipment) do so now. It’s a win-win. Not only will you receive maximum profit due to the market, but you are likelier to sell the vehicle in warmer months. With more offers on the table, power is in your court.
It seems as if used car prices will continue to go down throughout the rest of 2022. Jump on the opportunity to sell high in the warm season.
Rare Vehicles Stay High
There are a plethora of cars that will always have a significant presence on the market. Popular, reliable and cheaper vehicles like Hondas and Toyota trucks will always sell for higher margins based on their reliability alone. Subarus and other AWD vehicles will continue to be in demand in mountainous and snowy states like Colorado. Niche enthusiasts will always pay high prices for Jeeps, too.
While the high place of these vehicles’ sale prices is no surprise, rare and gas-efficient vehicles are seeing a significant spike this year. With gas prices on a jaw-dropping rise, gas-friendly vehicles find themselves at the forefront of the crushing used car market.
For example, according to Motor1, the used Hyundai Sonata Hybrid saw the highest increase over the past year. The fuel-efficient model increased 63.9% since March of 2021. This percentage implies an average price increase of $9,991.
Furthermore, the Kia Rio, Nissan LEAF and Chevrolet Spark saw an increase of almost 50%. The biggest riser, to no surprise, was the Mercedes-Benz G-Class. The average price for a used G-Class has risen to $220,846, almost $72,000 more than in 2021.
Simply put, if you are looking to sell a fuel-efficient vehicle, now is the time.
Internet Sales on the Rise
Here’s the most positive used car news (for us, anyway). Used car sales via internet companies have skyrocketed over the last year. For example, according to a recent CarMax press release, the combined retail and wholesale used vehicle unit sales were 343,413 in the first quarter, an increase of 11.3% since 2021.
Henceforth, the used buying process has taken a strange, but understandable, turn. With the dramatic increase in prices and unwillingness to meet in person, people are resorting to car sales through online outlets. Furthermore, the private sales sector can be time-consuming and confusing. Car buyers and sellers are getting fed up with the archaic ways of dealerships and private ads.
At Sell My Car Colorado, we have created a new and simple process to sell your car. No longer do you have to deal with the ever-changing sales market. We will handle that for you. With a click of a button we will evaluate your vehicle and give you a reasonable price ($100 more than the competition). We will pick up your vehicle free of charge, from used cars to immovable vehicles.
Avoid this confusing market. Come see what we are about. Ultimately, we stand by both transparency and equality. At Sell My Car Colorado, we want to get you the best deal possible ASAP.