If You Don’t Need Your Car, Sell It Now
With computer chip shortages and logistic issues for new cars, the used-vehicle market is scorching hot. The market is witnessing a steady drop in supply and increase in demand; manufacturers can't keep up.
The inability to maintain stock is out of the hands of car dealers and developers. The shortages of critical components are widespread throughout the marketplace, meaning inventories are waning, increasing the focus on used automobiles.
Unfortunately for your average buyer, the prices of used cars have exploded. June 2021 saw used car prices soar by up to 10.5%. Some models now have estimated values greater than their original sales price, with the average used car price topping $22,000.
Is Now the Best Time To Sell?
If you have a car you have been putting off selling, now is the time to put it on the market. While you can get a pretty penny selling the vehicle on your own, most dealerships are looking for quality used cars and are not afraid to pay.
With the ongoing car shortage, car dealerships are looking for inventory. Consumers need cars; that much is true. If a dealership does not have adequate stock, consumers are willing to pay more for available products — the rules of supply and demand are unchanging.
Therefore, car owners might find several dealerships willing to pay thousands above previous market or retail values because times have changed. However, do not rush off to sell your car without making a few considerations first.
What You Should Consider Before Selling
The main question to ask yourself is whether you need a car. Additionally, you will want to consider the vehicle you currently have. While many models have seen a significant increase in value, others have still experienced depreciation.
If you own a year-old, in-demand model, you might make money by trading the car in. Like the Dodge Ram 2500, some models experienced extreme value increases last year, taking in more than $5,000 over the initial purchase price.
Taking an in-demand model and trading it in for a luxury vehicle or more versatile car, truck, or SUV could be an intelligent decision. However, there is no reason to sell your vehicle if it will not benefit you somehow.
Honda Civics and Jeep Wranglers still experienced depreciation despite the inventory shortages. Still, the depreciation was not as aggressive as normal.
Ultimately, you need to evaluate your car's value in the market. Call around to a few dealers to determine the value of your vehicle; that is the only way you can decide if selling is the best thing for you.
There is still a lot of uncertainty in the market. Experts have no clear indication of when shortages and logistical challenges will resolve, making it unclear how long the used-car market will continue to thrive.
During these unsteady economic times, it is necessary to review your financial options to ensure fiscal security. Selling your vehicle might be a sound decision, especially if you have an in-demand automobile with a limited need for a replacement or want to use a trade-in to purchase a better car.