Predictions for the Used Car Market
Car prices have been rising steadily over the past two years. With supply chain issues and a lack of parts, dealerships worldwide have been forced to increase the costs of their vehicles. Will the auto industry ever get back to normal?
Production Will Recover
As mass production of new vehicles increases, the price of used cars should drop again. Some experts predict a recovery in vehicle production later this year or early in 2023. As the supply chain bounces back, prices on both new and used vehicles should normalize.
Cars Will Be More Expensive Than Trucks & SUVs
A survey from cars.com found that smaller cars such as Toyota Camrys and Honda Accords saw a 40-52% increase in price over the past two years, while trucks such as the Ford F-150 only increased by 23-48%. SUVs like the Jeep Grand Cherokee increased by 32-41%.
If you’re in the market for a used car, it might be worth taking the time to compare prices among different sized vehicles. Of course, the final price depends on the overall make and model, but with such a spike in pricing, it’s helpful to look at all of your options.
Prices Will Drop
Automotive News expects used car prices to drop 20-30% in the final quarter of 2022. The best thing you can do to prepare is plan ahead by working out your budget and getting the right auto loan.
The team at Kelly Community is here to help give you the peace of mind you need as you look into purchasing a new or used car. We offer a range of options to make your car-buying process easy and hassle-free. From competitive interest rates to flexible payment plans, we’ll save you the typical hassle that comes along with a dealership visit.