The car market has undoubtedly experienced some drastic changes over the last year. And you can take advantage of these changes by making more money when you sell your car. Here's everything you need to know about the current state of the car marketplace, why it's changed so much, and how you can profit from it.
If you're in the market to buy a new car - or truck, or SUV, or anything new that runs on wheels, there is a waiting game. The car market is experiencing an all- time low in new model production and drastic price increases, resulting in unheard-of car buying strategies.
According to the New York Times, people are traveling great distances to find the cars they want, giving up on bargaining, and paying higher prices. Also, there have been reports of people buying repaired cars after major crashes because of the shortage.
The perfect storm of circumstances that accompanied COVID-19 and everything that followed resulted in new car shortages. The shortage results from the short supply of global electronic components, inflation, imbalance between supply and demand, soaring gas prices, and growing transportation expenses. Due to people's fear of catching the COVID virus, people gave up on taking public transit and started driving again.
The lack of microchips that power the car's electronic components has had the most impact on new vehicle production. The auto manufacturers are waiting nervously for the microchips to finish their cars, and as a result, new cars sit idle on the factory floor.
War in Ukraine
The ongoing war in Ukraine is contributing to parts shortages at other automakers. The entire chain - from manufacturers to dealers to consumers - is stuck. Buyers are still waiting, not knowing when they can purchase their new vehicle.
Dealers who cannot replenish their new car inventory are also feeling the sting of the microchip shortage. This problem has led to longer waiting times (and growing wait lists) for customers looking to purchase a new vehicle. Buyers are waiting months for the delivery of their new car.
But even when you can find a new car in stock, there are downsides: high demand and low supply have been driving prices up. Buyers have been paying 40- 50% more than the MSRP for new cars, thanks to car dealers marking up prices.
It's not just new cars that are more expensive; even used cars continue to increase in price. Because used cars are more valuable, this is good news for someone looking to sell their car.
More people are being pushed into the used car market because of new car shortages and rising costs. The need for cars also increased when many people stopped using public transportation and started driving in fear of catching COVID.
The continued demand has used-vehicle wholesale prices increasing again in mid-May, after three months of decline. The average used vehicle listing price hit $28,365, marking a record price.
People must pay a higher price as a result, and if you're looking to sell your car, you'll likely get more money in your pocket.
Sales of new cars plummeted through 2013 because of the repercussions of the Great Recession from 2007 to 2009. Today, used car dealers have very few low- priced, older vehicles with high mileage.
The lowest-priced cars remain in the shortest supply. According to Newsweek, fewer than 1% of vehicles now sold are under $20,000 compared to 20% in 2016.
"If you have a car to sell, you could take a three-year-old car and you literally have no depreciation" Pat Ryan, CEO, and founder of CoPilot told Newsweek.
Currently, there are so many buyers looking to purchase a pre-owned vehicle that the prices are at an all-time high. The continued demand has increased used- vehicle wholesale prices again as of mid-May, after three months of decline. The average used vehicle listing price hit $28,365, marking a record price.
The founder of CoPilot Pat Ryan said, "this is a great seller's market. If you are a seller, sell your car now."
It's imperative that sellers act fast if they are looking to sell their cars now because experts are not sure how long this trend will last.
You can visit the Kelley Blue Book to get an approximate value for your car. Keep in mind that car values can fluctuate daily and depend on many factors, such as the cars mileage, year, condition, and features. If you decide to sell your car, you can get a fast offer from BestBid conveniently online.
Is your car taking up space in the driveway or you are not using it as much as you used to? If so, it might be time to sell your car.
But many people are hesitant to sell their car on their own because of the extra effort required to arrange a test drive and answer tons of questions. Fortunately, you can speed up the process and make it easier for yourself by using an online car buying service. They buy your car and handle all the details of the transaction.
There are many benefits of using an online service, like the convenience and fast cash for your car. You won't have to spend hours trying to sell your car on your own. Instead, you can focus on other things in your life and let a company like BestBid handle everything for you.
These services make everything as simple as logging on to your computer while you are sitting on your couch. Plus, you won't have to worry about your safety when meeting someone at a convenience store for a test drive.
BestBid Takes Care of Everything For You
BestBid will take care of everything, including the paperwork. The entire process is simple. They will provide you with an instant quote after you enter basic information about your vehicle, including mileage and condition. If you like their offer, they will arrange for the pickup of your vehicle entirely online. Better yet, they'll hand over your payment when they take your vehicle away.
Using an online car buying service is the best way to get the most money for your car with the least amount of hassle. You can visit BestBid to sell your car online today.
The current automotive market has resulted in unprecedented prices for both new and used cars. Auto industry experts expect used car values to remain high in the coming months, and people can make a substantial amount of money when they sell their vehicles. However, you must act sooner rather than later if you want to maximize the value of your car. What are you waiting for? Sell your car online fast with BestBid, today!