Compared to a year ago, the price of most used car types is down almost 5%. If you’re in the market for a used compact car, you’ll see the largest drop in price, but SUVs, midsize sedans, and luxury cars are also down. The one place where you won’t see a drop is with pickup trucks.
Does this mean it’s time to head to used car dealerships and upgrade your ride? It just might.
A More Stable Road Ahead
The falling prices are good news if you’re looking to buy a used car, and recent trends are pointing to a market that is more stable and predictable than what we’ve seen in recent years. Since the pandemic, the demand for used cars has been higher than the market could handle. And, while the supply and inventory are still lower than many used car dealerships would like to see, it is better than it was.
Wholesale prices continue to drop, and we are seeing this reduction in price in retail dealer lots too.
There’s Still Some Room for Falling Prices
If you’ve been watching and waiting for the right time to buy a used car, you may be wondering if you should make the plunge now or wait a little longer. It’s a tough call, but if you want the lowest possible price this year, there is still some room for the prices to go a little lower.
As long as you are shopping for a compact car, sedan, or an SUV, you could still wait. You won’t see as much of a drop as there was in September and October, but there is still a little more room for falling prices.
Want A Pickup Truck? So Does Everyone Else
If you’re looking for a pickup truck, it’s an entirely different story. The once humble and affordable pickup trucks are now some of the new and used car market’s most expensive vehicles. Part of the reason for this is the high demand. Pickup trucks are no longer just a work vehicle. They have evolved into huge family vehicles.
Not only are they larger with more room to fit the kids, but they have turned into performance vehicles too. A pickup used to be a no-frills, simple truck with just basic amenities, but now, they have the latest technology and more power than a family or daily driver will ever need. And everyone wants one. Well, almost everyone.
What’s The Best Kind of Used Vehicle to Buy?
Used car dealerships may not have the same inventory they had three or four years ago, but there are still plenty of used cars and trucks out there. The best kind of vehicle to buy depends on what you want and need. If the current trends continue, and you want something that will hold its value, you should consider a truck.
If you’re looking to save on your monthly payments right now, a compact sedan is the best way to get into something newer while saving some money.
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