Used Car Prices Going Up Again (except EVs)

  • 2 min read

According to Auto Remarketing, the current market for used vehicles isn’t offering many deals. Despite a slight decrease in prices over the past months, the shortage of good, late-model, low-mileage vehicles persists, keeping prices stable. In fact, some auctions are witnessing price increases, indicating a continuing trend of price stability.

Electric Vehicles: A Different Story
However, there’s an exception: electric vehicles (EVs). Used EVs are experiencing a sharp decline in prices due to an increase in supply. Gasoline vehicles remain in high demand, leading to a scarcity in the used market, while EVs are more readily available. The recent resolution of a pending strike impacted new car manufacturing, affecting used prices, but the primary issue remains the residual impact of reduced car production during the COVID-19 pandemic.

Lingering Effects of Previous Years
The repercussions of the reduced car production in 2020, 2021, and the start of 2022 are still being felt in the used car market. The backlog in supply chains and manufacturing during that period has created a shortage of used cars entering the market, which is expected to persist for some time. Additionally, vehicles that were in use during this period have higher mileage due to prolonged usage, further contributing to the scarcity of low-mileage used cars.

Expectations for Buyers
Unless specifically considering an EV, buyers should anticipate slightly higher prices in the used car market. The ongoing scarcity and increased mileage of available used vehicles are contributing factors. It would be helpful to share your observations and experiences regarding the used car market in your area.

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