Used Car Prices and What You Can Do About It

As this is being written, the world of used car (and new car) buying has been turned upside down. Prices are at record high levels, increasing rapidly over only a relatively short time.

So why the unprecedented rise in used car prices?

The short answer, as you might expect, is, “It’s the worldwide COVID-19 pandemic.”

While the answer is correct, it is more complicated. The end-result is a classic example of short supply and high demand. The supply shortage is the delayed result of a chain of events that started soon after the pandemic began. Workers in automobile manufacturing and supply plants were being tested positive and becoming ill. They didn’t come to work (or were told not to come), which slowed or stopped production. The same problem occurred at automotive parts suppliers.

With new-car production slowing, consumers began holding on to their used cars. They traded less frequently. Dealers not only had fewer new cars, but fewer used cars as well. As inventories declined, they increased prices on the remaining supply. Used-car auction prices reached record levels as dealers became desperate to fill their used-car lots. Consumers could benefit from higher trade prices, but the gains were often offset by higher new-car prices.

What You Can Do About High Used Car Prices

It’s true that used-car prices are high in general, but it’s still possible to find good deals — if you shop for them. Used car prices are not set in stone and don’t have a Manufacturer Suggested Retail Price (MSRP) like new cars. Used car prices are set by dealers (and individual sellers) based on market conditions and what buyers are willing to pay.  You can bet that two dealers who have exactly the same car, same condition, same everything, will have two different asking and selling prices.

So, how do you find used-car dealers who might have the car you want without wasting days of your time visiting all of them?

Fortunately, the Internet is your best friend when it comes to finding and comparing used car deals in today’s crazy market. It allows you to find dealers in your area who have the car you want, and to be able to compare price offers.

One way to do it is to find used-car dealers (and new-car dealers who also sell used cars) in your area by searching the Internet using Google. Then, assuming they have a web site (not all do), and the web site allows you to view their inventory (not all do), and it allows you to filter your search for just the car you want (not all do), you can repeat this process over and over to get enough information to be able to make some comparisons or even make a decision.

However, we suggest that there is a better way, or at least an alternative way, that is easier and faster. You can use our unique LeaseGuide Car Deal Finder. It works for both new and used cars. Select the “Used Car” option and enter the information about the vehicle you want, along with your contact information. Our backend “cloud” processor identifies local dealers who have that vehicle, and you’ll be automatically put in touch with them to view their prices.

Although the dealers we partner with have agreed to give you their best price, you should never assume that you can’t do better if you are willing to do a bit of extra negotiating. It certainly never hurts to try.

Yes, used prices are high now and supplies are limited but with the help of the Internet, you have the advantage of being able to have dealers compete for your business. By using our LeaseGuide Car Deal Finder, dealers know you are shopping at multiple sources and want to do their best to win your business.