(WTNH) — Big changes are coming to the used car market after they were in short supply and prices soared during the pandemic. Now, prices are dropping once again.
If you’re looking for a used car, now may be the time to buy it.
After record-high prices, the plunge is steep. The average cost of a used car last month was just under $30,000, which is a drop of $1,600 since last April.
“We have seen dealers negotiate on cars that a year ago, six months ago they weren’t even entertaining negotiation,” said Zack Shefska with CarEdge.
And the age of the car will make a big difference!
Experts said that newer used cars are down just 5% and cars five years or older have seen a 15% drop or more.
Be sure to do your research on inventory. For example, dealers have fewer Toyota Rav4, so they’re in high demand. For that car, you’ll have to pay big bucks.
“On the other end of the spectrum, a RAM 1500. We’ve seen folks save over 15% off of MSRP on RAM 1500s because there are a lot more inventory dealers sitting on them,” said Shefska.
But keep in mind that interest rates are also very high. And experts said that’s hurting sales. Auto loan interest rates have been above 6% since November. So, it’s a cash buyer’s market.
If you are planning to buy used – remember to shop smart. Have a mechanic inspect it before you buy and check the vehicle’s history before you hand over your hard-earned cash.