NORFOLK, Va. — If you have a car you’re looking to sell, now may be the perfect time.
The pandemic has changed all different types of businesses and markets, and used-car sales are seeing a surprising, unprecedented shift in value.
According to the car-shopping website Edmunds, the average listing price for all used vehicles increased approximately $708 from June to July.
For perspective, during that time listing prices on used cars almost always decrease.
So why and how is this happening?
For starters, the pandemic forced consumers to tighten up their spending; people who would normally be in the market for a new car opted for a used car instead.
That drove up the demand for used cars, inventory shrunk and prices increased. It's simple supply and demand.
Similarly, new-car production took a hit early on, so new-car prices were higher than usual. Combine that with historically low interest rates, and even frugal spenders had an incentive to buy.
It’s a sellers’ market right now, but experts don’t expect it to last much longer. New car sales are slowly but steadily increasing again, and with dealerships opening back up, trade-ins will boost their used car inventory.