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Used car prices start to fall, as new car inventory improves

If you’re shopping for a car, new or used, you now know that a huge lack of inventory can drive up prices. But the market has finally begun to show signs of improvement.

Cheryl Lucas, like so many car buyers right now, is amazed at the high prices of new and used vehicles.

“It’s ridiculous, people can’t afford it anymore,” he said.

Ford dealer Matt Sander, however, sees some good news on the horizon at his dealership, Woody Sander Ford. While its customers continue to have a long wait for hot sellers like the new Ford Bronco, new cars are finally re-entering.

“Bronco Sports, Escapes, Edges, as well as the F-150s,” he said.

After a very few years on sale, Sander said, “there’s finally quite a chance here.”

Good news for car buyers

A year ago, many new car windows were empty. This, in turn, sent buyers out to the lot of used cars, and prices rose on those used cars.

Now, however, as inventory begins to return, and as it is causing some buyers with higher interest rates to continue to hold, price pressure has begun to ease in the models used.

Depending on the automotive site, See Cars.com Used car prices have improved slightly since January.

But only a little. The average 2-3 year old vehicle is worth one percent less than the new model.

Karl Brauer analyst i-See Cars he says the difference is usually closer to 20 percent.

“To get that car, right now, it’s going to take a lot more expensive than the new one that people used,” Brauer said. – Because there are no new ones around and the used one is sitting there.

The full-size Bronco is a great example.

With a year to go to get a new one, if you can find one, they sell for $ 10,000 for the price of a new one and two year old Broncos. (The smaller Bronco Sport doesn’t have that price expansion, though).

So what can you do? Brauer says:

  • If you can, hold on a little longer: prices are expected to improve even more this fall.
  • Keep investing in your current car until then.
  • Look beyond the local car market.
  • Always check the price of the new version before paying a high price for a used model.

“The trick is to find the new available,” Brauer said, “or this problem wouldn’t exist if the new were available.”

Dealer Matt Sander expects to have even more new cars on his storefront soon, though I-See Cars said supply and demand could be a year away from returning to normal.

So start checking with your local vendors to see if they can be included in the new model you want soon, so you don’t waste money.

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Used car prices start to fall, as new car inventory improves Source link Used car prices start to fall, as new car inventory improves

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