Used cars for sale are getting younger.
And if you guessed this is because they’ve found the Fountain of Pre-Owned Car Youth—yeah, no.
But wouldn’t that be awesome?! I’m sure we’ve all had cars that could benefit from dipping their toe-tires into those revitalizing waters.
The reason for the used car revitalization has to do with the Pandemic’s enduring influence.
What this means for car shoppers is that a used car will be closer to brand new than ever before. This seems to work well since used car prices have increased by up to 15% in some markets.
So What’s Going on with the “Newer” Used Cars?
It’s not unusual for previous model year cars to be on dealership’s lots two months into the New Year. What isn’t normal is a Global Pandemic.
When the coronavirus hit the US in February of 2020, new cars sales hit the brakes.
Many of those 2019s and a few 2018s are still searching for homes. And once the economy and the restrictions began to lift, chip production slowed to a crawl.
With new cars becoming more like an iPad on wheels, no new computer chips means no new cars.
When the production of new cars slows, used trade-ins become a rare commodity. Good old-fashioned supply and demand rear its ugly head.
The used car “newness” is a contributing factor to an increase in the value of used cars in general.
Yet, even though car shoppers are paying a bit more on average for used cars, they’re still reaping the benefits.
The biggest benefit for many is a new car with used prices. This means all the latest tech, and of course, that new car smell.
Yeah, But Why Buy Used if prices are up?
That’s a great question. The easy answer is that the “newness” of used cars for sale has elevated the price.
Since there is a shortage in new car production, unsold “new” cars are now available at lower prices.
It’s a trade-off:
With used cars now being newer, the average price has increased. This is due in part to the better condition of the used car, coupled with inflation.
That $7,500 10-year old sedan has become a unicorn to many dealerships.
The trade-off is that you can get a used car that is still under warranty, with a premium trim for far less than the MSRP.
Plus, it’ll have mileage much more in line with a new car. But no, it won’t be under $10k.
Used Car shopping advice for 2021
If you’re in the market for a used car, you’ll like the price points for newer used cars.
But, if your budget is set in stone at $10K or under, it may be best for you to wait out the current situation.
However, if you’ve got wiggle room to afford an upper-tier low-mileage “newer used” car, then now is the time to strike.
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