Used Car Prices nationwide are soaring and have caused inventory supply to be scarce. Wholesale auto auctions, where car dealers get their cars have seen used car prices soar this year since we entered 2021.
The average used car price of cars are up and inventory is way down.
With supply being down, prices have been moving up 2% per week according to JD Power Auto Industry reports. That’s about $300 up per week on a $15,000 vehicle.
Why is this happening? The simple answer: Low Supply and High Demand. And it may get worse as the car shortage continues and new car buyers are entering the market to buy.
Ask a Car Dealer today and they will tell you that when they are talking or texting with customers they sense urgency from the buyers.
Car buyers that need a car know they should buy now, because if they see something they like, they may not find it again especially at that used car price. And maybe, getting qualified for auto financing will be harder as prices continue to rise.
The current inventory shortage is made even worse due to a serious computer chip shortage in the new car industry for past 2 months. Because of the chip shortage, new car production across all brands are down – that means new car dealers have no new cars, which creates even more demand for used cars.
However, it’s a great time to sell a car or get out from under a payment.
Guess What: We Buy Cars too.