If you’re looking to buy a car, now might be the time to consider buying a used car.
Used car prices are plummeting after soaring during the pandemic.
The car buying guide Edmunds reports that the average price to buy a used car in December was $29,533.
That’s nearly $1,600 less than last April’s record high of $31,095.
The reason? There is more inventory and less demand.
UNC economist Gerald Cohen said it was the reverse of what we saw a year ago; there is more inventory and less demand.
He said higher interest rates also explain why there are more vehicles on the market.
“Demand is slow due to higher interest rates and higher car prices and general inflation weighing on consumers,” Cohen said. “And then, at the same time, the supply has now increased as the shortages have eased.”
With a possible recession looming, Cohen said used car prices may continue to fall.
Depending on how you look at the situation, there is more good news. Analysts said consumers are paying less than list price for newer vehicles.
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