If you haven’t shopped for a used car in a while, you might be surprised by some of the technology—and you may be equally astonished by some of the prices. Sure, you can probably find a car in the classified ads for $2,000 or so, but if you need something reliable, that’s not the route to take.
Instead, you should always buy from a reputable source to make sure the money you spend is money well spent.
So what’s driving up the prices of used cars?
Updates in Technology
In many cases, the more improvements made to a thing, the more that thing will cost, and cars are certainly no exception to that rule. Advances, such as airbags and onboard tech, drive up the cost of manufacturing a car, and that extra cost trickles down to the buyers of both new and used vehicles.
When you think about what makes the best SUVs or the best cars, you likely think of features that make the vehicle safer, more comfortable, and more fun and economical to drive—and all of those improvements cost money. The updates are needed and have saved many lives, but it’s the drivers in the end who pay for research and development of any new feature or technology.
A Shortage of Inventory and Increased Demand
The other reason that used cars are so expensive right now can be blamed on the thing that turned our world upside down: COVID-19.
While the shortage isn’t so dire that used cars cannot be found, it is enough to have driven up the prices. Using a 2017 mid-size truck as an example, the price difference just from June to July shows a jump of $1,812 in the average list price.
Also, the interest rates for used cars have dropped since Coronavirus interrupted our lives, and many buyers are taking advantage of lower interest rates, furthering the shortage.
A Better Way to Buy Used
Even though prices are up, buying used is still a smart choice, especially when you buy from a reputable dealership that stands behind the cars they sell. The key, as with any purchase, is to find ways to get the best deal.
That means doing your research, making sure you get a fair amount for any trade, and never buying a car without looking up the current Blue Book value. If you’re looking for something very specific and hard to find, your only option may be to pay a premium. If, however, you just need a car you can count on, there are still good deals to be found.
Owings Auto offers a budget-friendly alternative to traditional used car buying. Our in-house financing with attractive terms and affordable car payments makes it easier to afford the car you need—and you don’t need perfect credit to qualify.
Want to know the best part?
You’ll never have to wonder about the quality of the car because we only sell reliable vehicles that have been carefully inspected and that are backed by a 12-month, 12,000-mile warranty.Read more about why in-house financing is easier, and then stop by to see our large selection of used cars, trucks, and SUVs. You can also start the buying process online by browsing our current inventory and filling out the simple financing application.