SHOPSMART AUTOS – CUSTOMER INFRMATION – May 15, 2021 (PT.1)
Used-car prices surpassed $25,000 for the first time
.
Car salespeople are in the driver’s seat, especially in used-car dealerships where the marker is hot — and it doesn’t show signs of cooling any time soon. Last month, the average price of a used car soared to an all-time high of $25,463, according to research firm J.D. Power. That’s more than $2,000 the average used car price was in April of last year, and it’s the first time the average price of a used car has exceeded $25,000. These record used car prices alone helped bring the U.S. consumer price index, a measure of inflation, to a 13-year high, according to a note written by Andrew Grantham, an analyst at CIBC Capital Markets, a Canadian investment banking firm. Airline fares, which saw double-digit growth last month, also played a big role, he said.
‘
Retail sales for new vehicles were expected to hit 1,325,500 units last month, a 111% increase compared with the same time last year, and a 21% increase compared with April 2019, when adjusted for the number of selling days. “What is normally a depreciable asset has been appreciating,” said Phil Maguire, who owns Maguire Family Dealerships, a group of 13 stores in New York state, told the Wall Street Journal. “It’s certainly surreal.” The global chip shortage, and seating-foam and plastic supply-chain issues increased demand. As a result, a limited inventory of used cars are contributing to the record prices for used cars, said David Paris, a senior manager within the market insights division at J.D. Power. To score a good deal, it’s best not to follow some traditional car-buying strategies, experts told MarketWatch. Instead, they recommend some new strategies. “Right now, dealers are competing like never before for a finite number of used vehicles in the wholesale marketplace, not only against themselves but also new players like Carvana
CVNA, -1.18%
and Vroom
VRM, +2.01%
, ” Paris told MarketWatch. On the flip side, that also means a higher trade-in value for your car, he said, adding that it “should help balance out the higher prices that they will be paying for either a new vehicle or used vehicle.” If you have your heart set on a used car, here are some tactics to consider:
What the News Means for You and Your Money
Throw out the old “shopping around” advice. For a used car, you’ll “need to act quickly” if you want your model of choice in your price range, said Karl Brauer, an executive analyst at iSeeCars, an automotive research firm.
Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
Trackback from your site.
