Given the economic reverberations caused by the pandemic, the shortage of computer chips has led to a shortage of new cars. This has had an enormous impact on the automobile industry as a whole, and due to supply and demand, the average price of a new car has risen to nearly $43,000. The surprising cost increases have impacted the used car market as well. The average price of a used car sets at around $27,000, which is a 40% jump in costs since the start of the pandemic. Upon hearing of this news, you may think buying a new car is out reach for the moment. However, the chances are in your favor if you decide to trade in your car for another. In fact, there’s no better time to trade in your vehicle. “The fact of the matter is that it’s true … you can sell (some cars) for higher than what you actually purchased it for three years ago – which is unheard of,” said Auto Direct owner Jason Doss. Studies from Kelley Blue Book show that because used car prices are up, trade-in values are just as profitable these days. Depending on the value of your used car, you have the opportunity to shop around for the best deal to obtain the car you really want. And, each dealership varies in need, so dealers may choose to upgrade your vehicle to increase their supply of cars that are higher in demand. That is, if your car is a best seller for the dealership, they’ll ask for it in exchange for a better car with a similar payment option as your previous vehicle. Needless to say, Texas People works to support members on their journey to better living. If you’re considering a new vehicle, be sure to use our FREE EZ Carfinder tool to help you find exactly the right vehicle for your lifestyle and your budget. EZ Car Finder will aid you in having a seamless car buying experience & saving money on important decisions when buying a car. Want to accurately calculate the costs of obtaining your new ride? Use our Loan Calculator to estimate your monthly car payment and purchase price. And to refinance the auto loan of your current car, use our Auto Refinance Interest Savings Calculator.
Sources: Winstrom, Author: Sam. “You Might Be Able to Make a Profit Selling Your Used Car.” Wwltv.com, 23 Jan. 2022, https://www.wwltv.com/article/news/local/used-car-prices-resale-vale-pandemic-kbb/289 -cf10afc2-f4b2-4f68-a1c8-c26c31b35516. “EZ Car Finder.” Texas People Federal Credit Union, https://fwtpfcu.org/ez-car-finder/#AutoLinkPage=calculators/show/ShouldIRefiAuto. Car Loan Calculator, https://autolink.io/txpeople/calculators/html/AutoLoan. “EZ Car Finder.” Texas People Federal Credit Union, https://fwtpfcu.org/ez-car-finder/