(WTNH) — If you’re looking for a used car, chances are, it will take you longer to find and cost a bit more. From supply chain slowdowns to increasing car-buying competition, you never know what you may have to pay.
For more than two years, used vehicle sellers have found themselves stuck on a tough ride.
Experts say new auto production is still lagging because of the trickle-down effect of early COVID-era factory shutdowns and parts shortages.
“We turned the switch off, we can’t expect it to come right back on,” said Everett Hellmuth, president of the Passport Auto Group.
As the county waits, many new vehicle shoppers are buying used, just as used auto sellers face surprising competition.
“There’s market shifts that are happening, and the rental companies that are buying vehicles used. It puts a lot of pressure on us cause we then have to buy the vehicles at a higher price,” said Shawn Sutton, director of operations at Passport Auto Group.
Rental companies are paying top dollar for older cars, trucks, and vans to meet booming demand from Americans, who are now traveling at pre-pandemic levels.
“Used car prices were up over 40 percent, so they increased over 40 percent in 2021 alone on average,” said Public Relations Director of CarFax, Emilie Voss.
Analysts at CarFax, a vehicle history-tracking company, found that used car prices are now averaging around $30,000.
But in the coming year, as more auto manufacturing and parts come back online, CarFax said prices could cool down.
“Our analysts are looking into 2023 that, you know, consumer demand has come down a little bit. New car production has come up a little bit, and they do expect to see some relief for a used car buyer as far as prices,” said Voss.
Remember so many dealerships need products, so shop around your current ride and see who can offer you a better deal for a trade-in.