Used Car Prices Predicted to Increase Short Term
Long time readers know the importance of supply and demand when it comes to car prices, so this large drop in supply is now expected to increase prices by up to 1.5% according to the National Auto dealers Association. Edmunds.com went even further and is predicting price inceases of $700 to $1,000 in the short term. However, KBB and AutoTrader.com say the impact may be overstated and predict there will only be a $200 to $300 increase, mainly in the Northeast region.
But most analyts claim the price increases won't be limited only to regions affected by the hurricane. Many used car dealers get their inventory from a network of wholesale auction houses where vehicles travel hundreds or even thousands of miles to meet demand. That could mean price increases will be felt by everyone.
If you have the luxury of waiting, my recommendation is to hold off purchasing a used car for a few months. Wait until late January or February of next year when the market will likely be more favorable. On the contrary, if you need to sell your used car, you should do it soon to maximize revenue.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid