Should I sell? The declining value of your car in today’s economy

2022 started off with a bang for people looking to sell their used cars. Unforeseen economic variables such as the COVID-19 pandemic and its impact on supply chains across the world–particularly those related to semiconductor microchips-sent used car vehicle prices to astronomical heights. Sadly, those boom times are over as prices have begun to normalize. 

Used valuations, however, aren’t so low that the market would flip to a buyer’s market. Higher rates are keeping new car shoppers on the sidelines or influencing them into the used car market. 


Based on Cargurus Index data for used car prices the value for used vehicles is still high but steadily decreasing:


The effects of time and inflation

The average price of used vehicles was $27,000 at the start of 2022. In June, the average cost was $38.000. Savvy consumers looking for a better economic outlook on used car prices or are waiting for a jump in the new year–that may never come, or at least, in the near term it doesn’t look as though we’ll see what we saw at the beginning of 2022. 

While supply chain issues have somewhat abated to relieve inventory issues for new cars. Inflation, high interest rates as well as murmurs of an oncoming recession are keeping most buyers on the sidelines or looking for cheaper options. 

Dealer and wholesale buyers are still looking for inventory as the aforementioned economic factors have created a demand for both newer used cars. 

Time is also not on your side, especially if you’re on the sidelines in terms selling your used car. Remember, your car is a depreciating asset and waiting out economic factors may just result in losing out on more value. When it comes to a car time = value.

 

Ready to sell your car?

If you’re looking to sell and get the most value out of your car, it’s still a good time to sell as used car prices have not fallen drastically. That being said, economic factors and time are against you if you are looking to sell. If you're an owner with a car in the two to five year age range it might be time to look at the value of your car to see if the time is right to get the most value of its sale.