With all of the high-tech features you’ve seen advertised in the latest vehicles, you’re thinking that it might be time to get one of your own. Plus, your current car is still in pretty good shape – you can probably get a great deal for it.
Before you move forward with purchasing a new car, and selling your existing one, you’ll want to learn a little more about the current car market. Below, we explore what’s going on with the automotive industry and if this is the right time for you to be selling your car.
What Is the Car Market Like Right Now?
The car market of 2022 is in an unprecedented place. Because of the pandemic, there have been shortages, hold-ups, and unexpected price increases.
The price of both new and used cars has increased by more than 30% in the past two years. Supply chain issues, labor shortages, and microchip shortages have all contributed to this. Plus, inflation hasn’t helped. As a result, there are fewer cars on lots to choose from and they are more expensive.
Even though most people have gone back to work, things are not yet back on track. In fact, car production still hasn’t increased enough to meet the demand for new vehicles. Plus, supply chain issues remain, making it difficult for the cars that are available to reach lots.
Overall, things are uncertain and experts estimate that it will take at least the rest of 2022 for things to start getting back to normal and for prices to drop.
Pros of Selling Your Car Right Now
Now that you’re aware of the market that you’ll be dealing with if you decide to sell your car, let’s go over some of the advantages of selling in this market.
You’ll Likely Get a Great Price for Your Used Car
As you learned before, car prices are high, dealers are desperate for vehicles to stock on their lots, and the demand for all kinds of cars is high. So, you won’t have much trouble selling your used car and getting a good deal for it.
It’s very much a seller’s market right now, so you hold a lot of power when it comes to getting a good deal for your car. This is particularly true if your car is in great shape and comes with some modern features that drivers are looking for.
You’ll Have Plenty of Buyers
Many were not driving during the pandemic as they had to shelter in place. However, as restrictions were lifted and everyone was eager to go out again, the demand for vehicles sky-rocketed.
Because things are still not back to “normal” and dealerships can’t keep up with the demand, there are still many buyers out there looking for the right car.
As a result, you’re likely to get numerous offers from both private buyers and dealerships. Rather than waiting weeks or months for someone to buy your car, you might be able to sell it in a few days—one day if you sell it to a dealer. If you sell your car and it is expensive, to avoid road damage you may want to consider transporting the car in an ENCLOSED CAR TRAILER.
There is Little Competition
This might be one of the best times to sell because of the shortage of vehicles available. New vehicles, in particular, are in short supply, so buyers who desperately need a car are willing to shop among the available used cars.
Cons of Selling Your Car in Today’s Car Market
In addition to the several benefits that come with selling your car in this current market, there are also a few disadvantages for you to consider. Read through them below.
The Car You Want Might Not Be in Stock
One issue with selling your car right now is that you might not be able to replace it with the one that you want. If you’ve been looking forward to upgrading your current car to the latest model, you might either not be able to do it or have to wait until your dealer has the car you want.
As we discussed before, there is a shortage of vehicles nationwide, especially brand-new models. So, while in the past you were able to walk onto a car lot and have your pick of models and trims, you likely won’t have the same experience now.
The best way to get around this is to let your local dealerships know which model or models you’re interested in and wait for them to tell you when it’s in stock.
The Car You Want Will Be More Expensive
Just as there are fewer vehicles to shop for, you’ll find the ones that are available are pricier. Even if you sell or trade your current car for another pre-owned model, you’ll be paying a higher price than you would have just two years ago.
Plus, it’s uncertain when car prices will decrease again. So, it will be up to you to decide if your next car is worth the price.
Preparing Your Car for Sale
If you ultimately do decide to sell your car, here are some steps that you can follow to not only prepare it for the sale but get the most value you can:
- Get a quote for the car: Sites like Kelley Blue Book and Edmunds offer free car estimates so that you can plan for your sale.
- Clean your car: Whether you do it yourself or pay a professional detailer, make sure to get both the interior and exterior of your vehicle thoroughly cleaned before sale day.
- Get maintenance done: Before selling your car, get its maintenance up to date. It looks better to buyers when your car is in great shape and they don’t have to take it for service after buying.
- Prepare the paperwork: Make sure that you have the title and registration of the vehicle to be able to legally hand it over to the buyer.
The current car market is in your favor if you’re looking to make money by selling your car. There is a high demand for vehicles and shoppers are willing to pay the price, even for used models. However, you’ll have to consider whether buying a new car along with your sale will be worth it.
She works as an editor at Research Snipers.