Sell your used car now if you don’t use it!
As if 2020 wasn’t enough, 2021 seems to be even worse. This is true even when you’re thinking about buying your next car. Many used cars sell for more than their new counterparts because of record-breaking shortages.
The average used car now costs nearly 30% more than it did last year before lockdowns. According to Cox Automotive (which tracks six million vehicles annually at wholesale dealer-only auctions), used car prices have increased by 1.7 percent over the past three weeks.
Let’s take the Kia Soul for an example. TrueCar reports that a brand-new 2021 Kia Soul LX costs $17,724.
Yet, the one-year-old 2020 Kia Soul LX in identical color and with identical options sold for $18,500 at Manheim Auctions, the largest wholesale auction house in the world. It had 5,000 miles on it and was contaminated with oil, according to the auctioneer.
This is not all. A $500 auction ‘buy-fee’ was required for the buyer. The price difference for the used model increases to $1,500 to $2,000 if you add in a $200 post-sale inspection and transport costs.
The exact same model of car as the 2016 Kia Rio LX (below left) that was sold cheaply a few months back. When they turn three years old, small subcompacts with limited options are often available for less $10,000. It was sold today for $12,400 with a $500 purchase fee. This is more than $4,000 above its wholesale average price, which was $8,275.
You might consider purchasing the vehicle you lease at the end of your lease to buy it out and sell it yourself.
Even damaged and unpopular cars are receiving high price premiums. A 2017 Hyundai Accent with almost 75,000 miles and a defective transmission sold for $8,000, versus a wholesale average of $5,700.
Also, SUVs with no issues are still very popular. Before I walked out of today’s auction and ripped off my badge as a bidder, I noticed a 2019 Ford Escape SEL (above, right), that was worth $19,150. It sold for a jaw-dropping $22,400, plus an even higher auction fee than the Kia Rio.
You might consider purchasing the vehicle you lease at the end of your lease to buy it out and sell it yourself.
Sell an extra car if you don’t use it. I’ve never seen such high prices in my 22 years of car dealership.
This is why? There is a difference between supply and demand.
Due to a shortage of microchips , plants are closing down and reducing their output. The modern car requires sensors, computers, and chips. No chips? No cars
Sell an extra car if you don’t use it. I’ve never seen such high prices in my 22 years of car dealership.
Steven Lang is the co-developer of the Long-Term Quality Index . The LTQI is the largest study ever performed on the long-term reliability of used cars, which currently has professional mechanics nationwide appraising and inspecting used cars at all stages of their lives . This six-year-old study currently has well over two million vehicles . This data will be available for free, forever. Mr. Lang has also been an auto auctioneer, car dealer , award-winning journalist, and part-owner of an auto auction over the last 20 years.