THE USED CAR MARKET HAS NEVER BEEN SO HOT!
Rest assured we can always save money by purchasing a used car instead of a new one, right? While it’s still cheaper to buy used in today’s market, you can figure on a 40% increase from 2020 according to data from JPMorgan. That means the nine year old car you have your eye on will cost you $3’000 more than a year ago. A five year old car may cost you as much as $6’000 more.
So what in the world caused used cars to go viral? Supply and demand is and always will be what governs prices and it’s simply the used car market’s turn. Skyrocketing new car prices are the result of a global shortage of microchips. Semiconductor chips are needed for virtually everything today including the vital safety and luxury technology of our cars , manufacturers are stuck without them. With dealer stock dwindling, down 54% this June, new car prices have launched as well. This domino effect has forced new car shoppers into the used car market all but depleting it. Supply and demand has dramatically changed new and used car availability within the last year, fanning price fires higher and higher. Analysts say this “chip” shortage could drag on a couple of years.
“Skyrocketing new car prices are the result of a global shortage of microchips”.
MAY BE A GOOD TIME TO FIX UP YOUR CURRENT CAR
Today’s hot used car market has many drivers wondering if it’s time to fix up their current vehicle instead. There are bunches of simple internal, mechanical fixes that can get your car running noticeably smoother and feel more comfortable. Check these major areas and see if they need upgrading:
- Headlights. Cars and trucks built over the past few decades typically have plastic headlamps that fog up over time. Headlight restoration is usually less than $30 and instantly makes a difference. A full headlight replacement can add a sporty look to your ride and will cost between $50.00 and $100.00 to do it right.
- AC. All cars’ AC systems can get mold, mildew, and bacteria build ups if not cleaned often enough. Make sure the air passageways into the vehicle aren’t covered by leaves, dust or grime before changing or cleaning any filters. Adding an air-conditioning deodorizer to the vents or your rearview mirror can bring back that new car smell, too.
- Rubberizing. As your car ages, the rubber trim on doors begins to wear and tear, letting your hot and cold air out and wind noise and rain in. The adhesive strips take a little patience to apply, but are incredibly cheap and can instantly make the interior of your car quieter while driving.
- Windshield Wipers. Old wipers break down and lose their effectiveness over time, making driving in the rain and snow dangerous. Upgraded windshield wipers make the cold, rainy seasons a little safer.
- Brakes & Suspension. Old cars start getting stiffer as the years pass, and brakes get squeakier and squeakier with every red light. Getting your shocks, springs, dampers, struts, brake rotors, and brake pads checked and possibly replaced can completely change how your car drives. **New springs can lower your car and improve handling if you’re a car enthusiast!**
- Wheels. Tires periodically need to be replaced as treads wear down. Use the Penny Test (http://www.firestonecompleteautocare.com/penny-tire-test/) to check your car. Even if you don’t need to replace your tires, installing new tires can completely change how your car drives (and looks) and are much cheaper than a new car payment. Read my full article on how to Make Your Old Car New Again.
Whether or not to move forward with your new car purchase is tricky in today’s market. The truth is, the answer is different for everyone depending on your circumstances and the type of car you’re looking for. Have questions? I’ll be happy to answer your questions and guide you through your decision making process.
Call or text (757) 560-4252 and ask for Mike Love, I have answers.
Levin, Tim “Why used cars are so expensive now — and when prices may drop” BUSINESSINSIDER.COM July 12th, 2021 Web. Retrieved from: https://www.businessinsider.com/why-are-used-cars-so-expensive-now-shortages-pandemic-rentals-2021-7
Reuter, Dominick “The chip shortage that’s wreaking havoc on supplies of cars, computers, and more could last another 2 years, experts say” BUSINESSINSIDER.COM May 14th, 2021 Web. Retrieved from: https://www.businessinsider.com/global-chip-shortage-could-last-another-2-years-experts-say-2021-5