Used car values reaching historic levels
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Supply chain shortages continue, since many manufacturers around the world shut down during the pandemic.
New cars are in short supply, increasing the demand and price of used cars.
If you have a late-model used vehicle, auto dealers are looking to talk to you.
“You’re going get a fantastic amount as far as trade-in value goes,” said Ivan Drury, with Edmunds.com.
According to Drury, dealers are after vehicles less than 3 or 4 years old.
“You would be shocked as a current car owner how desperate dealers are getting in order to acquire inventory,” he said.
This is because of a shortage of computer microchips that has severely slowed new vehicle production.
Video from WGAL’s Hearst sister station in Kentucky shows a lot outside Louisville that’s full of brand-new pickup trucks waiting for microchips.
WLWTTrucks are parked at the Kentucky Speedway until microchips are available.
“We’re seeing new car inventories down 50, 60%. In some localities, 70, 80%. You really have to resort to your only other option,” Drury said.
That option is a quality used vehicle.
If you have a vehicle to sell, you may make a pretty penny.
“Something that’s 1 or 2 years old, expect that to be close to 80% at times, if not higher, as far as retained value,” Drury said.
If you’re looking to buy, used car prices have jumped about 25% in the last year during the pandemic.
Pickup trucks and SUVs are the hardest to find right now in a market that’s never been seen before.
“Really, I’d say if you want some level of normalcy, give it a year,” Drury said.
Edmunds.com said the market is also dealing with a shortage of vehicles from rental car companies that are holding onto their vehicles longer because of the new car shortage.