Is there finally a plateau in car prices? It could be 2-3 years before prices drop
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Just a few months ago, used cars and trucks were bringing absolute top dollar. In fact, a few thousand dollars above retail Kelley Blue Book valuations. Not so much now.
As the big V8 vehicles are now becoming rather soft on the market and are thousands less than they were just 120 days ago, this is all thanks to the ridiculously high fuel prices. So, pretty much most gasoline V8 full-sized pick-up trucks or SUV’s have taken a serious hit in valuation.
The good news is the Japanese import SUV’s and sedans remain at the top of the list on valuations. Anyone who purchased a new vehicle for well above MSRP (or a pre-owned vehicle for thousands over high KBB retail value), should not try to trade in that vehicle anytime soon. With the combination of these two contributing factors, extremely high pricing during COVID and the current horrible drop in market valuations now on used vehicles, many folks are thousands of dollars underwater.
Just this last week, I had two clients attempting to trade out of Kia Tellurides and both were close to $10k upside down. With those who like to trade in vehicles frequently, and who purchased when pricing was so high due to the obvious vehicle shortage, now is not the time to try to get out of your current negative equity situation.
The market plateau has arrived.
The shortage of new vehicles is still present. New domestic ¾ ton or larger trucks are pretty much unobtainable and they are still selling for well above MSRP. To get one you have to place a special order and get in line.
With hybrid vehicles or EVs, the wait jumps up to almost a year to a year and a half. The government and media are pushing for hybrid and electric cars despite the prices still thousands over MSRP and the long wait before delivery. Automotive experts from the manufacturers are now saying the supply issues will not return to the 2019 pre-COVID levels for another 2-3 years as microchip and supply chain issue slowly begin to normalize.
There is some good news!
If you need a vehicle of just about any model, new or pre-owned, look to a professional auto broker whose sole job is to search far and wide for the car you want. We have contacts, resources and experience.
At Ferguson Auto Brokers for example, we are a broker with over 40 years of experience. We can save you time, money and the hassle of today’s buying issues. With our close connections with dealerships all over the state, we can get most vehicles, new or used. Even the so-called great negotiators cannot get the deals or see inventories we have access to.
Thank You all for reading, Thanks for reading!
If anyone would like to save time and $money or is not looking forward to the hassle of buying (or selling) a new or pre-owned vehicle, I’m happy to help! Email me at email@example.com. Have a used vehicle that you would like to sell? I can help with that too!