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What’s going on in today’s car market and how can one navigate it?

  • Aniya Faulcon
Used cars for sale on a lot at a dealership in Doylestown, Pa., Friday, Feb. 4, 2022.

Matt Rourke / AP Photo

Used cars for sale on a lot at a dealership in Doylestown, Pa., Friday, Feb. 4, 2022.

Airdate: August 18, 2022

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It’s been known that when you leave the lot of a car dealership with a new car, the value of the car depreciates immediately. However, in today’s car market the tables have turned in the favor of used car owners.

According to the U.S. Department of Labor statistics, used car prices are up nearly 40% from last year. New cars are only up by 12%.

Ivan Drury, Edmunds’ senior manager of insights, said we’re in this predicament because of a depletion of inventory and microchips, and COVID-19 protocols on assembly lines.

“We are seeing that virtually every single used car, and we’re talking about one year old, three year old, nine year old cars are up in value,” Drury said. “We’re just at this point where people can’t get what they want and even if you do order a new car today, you’re going to have to wait and it might not even be fully equipped in the manner in which your accustomed to because it might be missing a chip or two for certain options.”

Drury also said in today’s car market, it’s better to buy a car than to lease one, as lease payments are expensive right now and comparable to the cost of buying a car.

Here are some tips that he gave on negotiating:

  1. Shop your existing vehicle to as many outlets as possible
  2.  Shop around for the best interest rate
  3. Be confident
  4. Do you research to find out the market rate for your vehicle
  5. Research add-ons for your desired vehicle and decide what’s necessary
  6. Look over your purchase contract to learn common auto terms

Drury said it’s important to find out what deals are available at dealerships, the published and unpublished ones.

“Ask the dealer what are the incentive programs available or go to the automakers website because they publish these incentives,” Drury said. “…They adjust these incentive programs every single for sales day of the month. So, be aware. People think you actually have to buy on a holiday, that’s really not the case it’s the same incentives throughout the entire month.”

 

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