Why You Shouldn’t Put Off Selling Your Used Car
If you’ve been thinking about getting rid of your car, now is the perfect time to do so. According to the Consumer Price Index from the Bureau of Labor Statistics , the cost of used cars and trucks increased by 22.7% compared to the same period last year. While this trend is affecting the entire country, it is affecting cities the most. In Miami, used car prices rose 35.9% from March 2021 to March 2022; In New York, growth was 35.2%; and San Francisco, up 36.9%.
If you’re looking to buy a used car, we’ve got some tips for you , but if you’re looking to sell yours, now is the time to make someone else’s misfortune your good fortune.
Why are used car prices soaring?
Used car prices are rising as a result of the confluence of forces. The first force is the product of supply and demand in the new car market. The price of buying a new car has risen significantly during the pandemic due to a global shortage of computer chips, rising labor and manufacturing costs, and supply chain delays. Because of this, many consumers are turning to the secondhand market in an attempt to save money. This, in turn, impacts supply and demand in the used car market as more competition drives up prices (not unlike what we see in the housing market).
Combine that with the second force—inflation, which affects goods across the board—and you see unsustainably high prices in the used car market. You should be aware that this window will not be open forever. Used car prices have already declined from their peak price and are expected to continue to fall throughout the year.
How to sell your used car
When selling a used car, you have two options. First, you can sell it to a used car shop who will then take care of selling it. This option will end up with less money in your pocket, but it is the path of least resistance. Secondly, you can try to sell it yourself – a way with higher risk and higher profit. Yes, you won’t have to pay a commission or sell your car at a discount, but you will be liable to a new buyer if your car breaks down shortly after purchase.
Regardless, Kelley Blue Book recommends that you make the following preparations for your vehicle if you want to sell it for the highest possible price.
- shampoo carpets
- Clean the dashboard, seats, mirrors and shine all surfaces.
- Remove all stickers and magnets
- Removing dents, dents and scratches
- Replace any burnt out bulbs
- Repairing chips and cracks on the windshield
- Check the brakes and consider replacing them if they are worn out.
- Inspect the tires and determine if they need to be replaced.
It’s impossible to know exactly where the car market is heading, but all signs point to the clock ticking in this used car frenzy. If you want to keep your car for a few more years, that’s your right. But if you want to sell, try not to wait too long.