WHY ARE USED CARS EXPENSIVE RIGHT NOW?

There are many reasons to consider used cars, whether you’re searching for a family SUV or a capable pickup truck. One of the benefits of purchasing a pre-owned vehicle is that they’re much less expensive than new cars, but you’re not alone if you’ve noticed a recent uptick in the cost of pre-owned vehicles. What’s behind the higher price of used cars?

PARTS ARE SCARCE

There have been significant supply shortages since the COVID pandemic, so car owners may struggle to find the necessary parts and accessories to repair and service their vehicles. It also means that parts required to produce the vehicles are less available, so fewer cars are built.

With fewer new models on the lot — at higher prices than before — those who need vehicles buy used, driving supply down and prices up. That’s one of the reasons you see higher costs for cars that have been traditionally more available and more affordable.

THERE ARE FEWER INCENTIVES

When manufacturers have a lot of inventory, they often provide incentives to try to make cars more attractive to buyers and to make room on the lot for new models. Because fewer vehicles are being produced and pre-owned vehicles are becoming more popular, there is less excess inventory and less incentive to extend finance offers to buyers.

Incentives are a relatively common factor in vehicle pricing, and removing those incentives can make the sticker and final price of pre-owned vehicles appear more costly on the surface.

Here at Brown and Wood Buick GMC, we’re answering your pressing questions about the pre-owned vehicle purchasing process. Visit our dealership for auto financing information and to take your first test drive. 

Categories: Pre-Owned Inventory