It's no secret that the past few years have not been great for used car buyers. Because of high demand, low inventory, supply chain challenges, and general societal changes, used car prices have skyrocketed. What used to be a way to save some money started to seem like a silly investment. Why pay for a used car when you could get a new one for nearly the same price? That is if you could find a car at all.
Nearly three years after the start of significant car price changes, is it time for the cost of used cars to go back down? What can we expect for used car buying in 2023? Here's everything you need to know about prices for used vehicles.
Are Used Car Prices Still High?
The short answer is that car prices are still high compared to what they were before the pandemic began, but they're coming down. According to Forbes, November was the fifth month when used car prices fell in 2022. Though the prices have fallen by 12.3% since the height of the used car prices, they're still 37% higher than in November 2019.
So, though prices have been going down this year, they're still greatly affected by the increased used and new car prices from previous years. Whether or not used car prices have fallen enough for many customers can depend on factors like where you live, your budget, and what kind of used vehicle you're looking for.
Why Have Used Car Prices Fluctuated?
Car prices began to rise for several reasons when the pandemic started. The car market experienced many production shutdowns and supply chain issues. As the supply chain issues worsened, the cost of raw materials increased. This is because it costs more to gather and ship the raw materials used to make vehicles.
The chip shortage was another reason for the increase in car prices. Modern cars contain computer chips that measure and facilitate many of the car's functions. These chips can detect oil levels, engine temperature, and tire pressure. When the prices of materials started to go up, there was also a chip shortage that made it so many car manufacturers couldn't continue making cars at the same rate. When the total number of vehicles available began to decline, demand stayed the same while supply went down, driving the price up.
Now, we're beginning to see some price decreases. These decreases may happen because car manufacturers are beginning to produce more, increasing the overall supply. Another reason the industry may be seeing price declines for used cars is that interest rates for car loans are growing, making it less appealing for people who may get a car loan for a used car. This lowered demand means an increase in supply.
Will Used Car Prices Go Down in 2023?
Nobody can definitively predict whether prices will likely go down this year, but the answer may be yes based on the current rate of decline. Though used car prices may continue to decrease into 2023, it may not be likely that car prices will return to normal until much further in the future. If you can wait to purchase a pre-owned vehicle, staying a few more months may help you find lower prices, but maybe not.
When Will Normal Car Prices Return?
Car prices may never return to the level they were at just before the pandemic. Inflation continues to affect the rates of everything we buy, and there are still supply chain issues that manufacturers and suppliers deal with daily. Neither of these problems is likely to disappear anytime soon or potentially ever. According to Forbes, it may be as far as 2026 before the car market has returned to normal.
How To Get a Good Deal on a Used Car
Sometimes you can't wait for the market to improve when you need a new vehicle. If that's your situation, it can be helpful to take advantage of some methods for lowering the price of a used car. These are some tips you can use to get a good deal on a used car:
- Learn about the car. Please do some research on the vehicle to learn about how much it's listed for online. You can also learn more about the typical maintenance and common mechanical issues, as they can make the car cost more down the road.
- Determine your budget. Before purchasing a new car, make sure you know your budget. You can use this information to negotiate with sellers, who may be more likely to work with you if they know your range.
- Test drive the vehicle. See if you can find a dealership that has the used car you want in stock so you can test drive it.
Buy Your Used Car at Your Auto Source
Another great way to get a reasonable price is to purchase a used car from Your Auto Source. We pride ourselves on providing the highest quality customer service to our shoppers, including helping you find the right price for you. Our expansive inventory of used vehicles makes us an excellent option for finding and purchasing your next used car.
We offer a wide range of makes and models, including those from Subaru, Honda, Ford, Jeep, and Toyota. If you have a vehicle, you're hoping to trade in; we can offer you competitive prices. Our in-house financing experts are highly knowledgeable and skilled at helping you find the financing options that work best for you. We can help you leave the lot in the pre-owned vehicle of your dreams, regardless of your budget or car preferences. Whether you're looking for a car, SUV, or truck, we have the best pre-owned selection in the York, Pennsylvania, area.
If you're looking to buy a new car in 2023, learning more about what prices look like and where they may go can help you better understand if it's the right choice. Here at Your Auto Source, we're committed to helping you get the used car you need at the best price. Our friendly associates can help you learn more about our low prices and financing options when you visit our dealership. If you're curious about our current stock, you can see what we have or contact one of our friendly salespeople today.
Image by Obi is licensed with Unsplash License
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