Why are used cars so expensive?
New and used automobile dealerships currently face one of the most difficult times in my memory of two plus decades in acquiring used vehicles to sell to the public. The main reason for this challenge can be found first and foremost in new truck and car shortages due to the lack of microchips needed to run today’s vehicles.
As we are all very familiar supply chain issues abound. The lack of new cars and trucks have created an unprecedented demand for used vehicles. Subsequently, the value of a used automobile jumped notably over the last couple of years. The used automobile prices will continue to be elevated until manufacturers can provide the types of cars and trucks the consumers want.
Currently, new car and truck production increase monthly. The challenge of meeting demand due to chip shortages remains mainly in the higher trim level vehicles. So, people are still looking to used vehicles to meet their driving needs.
How does this benefit the consumer? Here’s a couple of tips. Let’s start with your new vehicle purchase. It’s important when buying new to find a dealer who does not mark up above sticker value. They are out there, especially here at Kempton Chevrolet.
Once you land on a new ride, you will find you are in the driver’s seat with the trade. Every new dealer wants your car or truck and they will pay the big bucks to get it especially if it’s I great shape. The new car shortage makes your car or truck worth more than ever. I recommend you buy new and trade at high prices while you can or before the microchip shortage ends.
If you are buying used, the trade-in value will still benefit you. Shop for vehicles that are below the average market value. Ask you dealer what the average price in a 300 mile radius for the used vehicle you are looking for.
If the dealer can’t sell it below this, go somewhere else. Oh, make them show you these numbers. We dealers all know them and can provide empirical information. Next trade your car and again, you will get top dollar for your used vehicle. Kelley Blue Book trade values gives you a good idea on what your car is worth. So, have that information available.
Finally, if you don’t need your current car or truck, bring it to the dealership and sell it. I personally will put an offer on all vehicles brought into the dealership. Keep in mind, values are dropping but they are still high. This won’t continue forever. Trade or sell your car or truck now before rock bottom hit us. It will come soon.
Kip Kempton
As we are all very familiar supply chain issues abound. The lack of new cars and trucks have created an unprecedented demand for used vehicles. Subsequently, the value of a used automobile jumped notably over the last couple of years. The used automobile prices will continue to be elevated until manufacturers can provide the types of cars and trucks the consumers want.
Currently, new car and truck production increase monthly. The challenge of meeting demand due to chip shortages remains mainly in the higher trim level vehicles. So, people are still looking to used vehicles to meet their driving needs.
How does this benefit the consumer? Here’s a couple of tips. Let’s start with your new vehicle purchase. It’s important when buying new to find a dealer who does not mark up above sticker value. They are out there, especially here at Kempton Chevrolet.
Once you land on a new ride, you will find you are in the driver’s seat with the trade. Every new dealer wants your car or truck and they will pay the big bucks to get it especially if it’s I great shape. The new car shortage makes your car or truck worth more than ever. I recommend you buy new and trade at high prices while you can or before the microchip shortage ends.
If you are buying used, the trade-in value will still benefit you. Shop for vehicles that are below the average market value. Ask you dealer what the average price in a 300 mile radius for the used vehicle you are looking for.
If the dealer can’t sell it below this, go somewhere else. Oh, make them show you these numbers. We dealers all know them and can provide empirical information. Next trade your car and again, you will get top dollar for your used vehicle. Kelley Blue Book trade values gives you a good idea on what your car is worth. So, have that information available.
Finally, if you don’t need your current car or truck, bring it to the dealership and sell it. I personally will put an offer on all vehicles brought into the dealership. Keep in mind, values are dropping but they are still high. This won’t continue forever. Trade or sell your car or truck now before rock bottom hit us. It will come soon.
Kip Kempton
