Summary
- Up to 2019, used car prices had increased on average 5% per year for many years
- When the global pandemic hit, new car sales plummeted
- Used car sales, however, increased exponentially
- This drove up the price of used cars, especially for those who had career slowdowns and needed/wanted more disposable income during economic uncertainties
- While the market has stabilized for now, we don’t think the prices will start dropping until another polar shift in the segment occurs
While we all desire to have a new car in our driveways, the realistic truth of the world is that used cars are a much, much bigger market. Be it through private sale, auction, or a used car dealership, the number of used cars for sale outnumber new cars somewhere in the range of 10 to 1.
The past few years have witnessed a particularly tumultuous journey in the used car market, however, with prices experiencing unprecedented swings. From the stable grounds of 2019 to the rollercoaster ride of the present, let’s delve into the trends and factors shaping the trajectory of used car prices.
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