The pandemic appears to have created a seller’s market where used vehicles are concerned.
The average value in July for all vehicles traded-in, within the U.S., increased to $14,066 from $12,083 in June — up 16.4 per cent, according to Edmunds data, which suggests that Americans should sell or trade-in their used car now.
“The used market is experiencing a dramatic recovery: used vehicles were sitting almost untouched at the start of the pandemic, and now they’re practically flying off dealer lots,” said Jessica Caldwell, Edmunds’ executive director of insights.
What’s driving up used vehicle values? The analysts at Edmunds say it has to do with limited new vehicle inventory and a surge in demand for used vehicles. Data from the company indicates that average days to turn (DTT) for used vehicles declined to 38.3 days in July, compared to 44.1 days in June — a 13.1 per cent decrease that represents the steepest month-over-month decline the company has on record.
“Dealers are willing to pay more to acquire inventory to meet the surge in demand for used cars, which is great news for car owners because it means they can expect to get a higher value for their vehicle if they sell or trade right now,” said Caldwell. “But time is of the essence because there’s no guarantee that these unique market conditions will continue for long.”
