It’s time to buy, sell, or trade-in a used car for shoppers
Tuesday, August 11, 2020
In mid-April, wholesale used car prices hit bottom and were at a 12% below from the previous year, according to Cox Automotive. The lack of new and used vehicles is why values took a plunge. Because of the lack of consumer demand, there was a lack of acquiring inventory at the dealerships.
The drop occurred with wholesale used-car prices, but not retail car prices that shoppers pay. This means that if customers are looking to buy a used vehicle, the prices are not good. If they are looking to trade or sell, it is the perfect time to do so. According to Cox Automotive data, the average value of a 3-year-old car pre-COVID was $19,270. That value dropped to $17,178 at its low point. Today, the same car is worth $20,245, which is $975 above pre-COVID levels.
To read more, read Kelley Blue Book’s article.
Action item for dealers:
- A suggestion for dealers is to have trade-in offers for shoppers for new vehicles. New vehicle sales are down, and by offering a great trade-in offer, auto dealers can obtain used car inventory and sell new vehicles.