Why Used Car Prices are Soaring During the Coronavirus Pandemic? Should You Worry?

One of the hottest news in the United States right now is the soaring prices of used cars. So much so that the experts are pointing to this market and stating it as the cause of the 0.2% inflation which happened in the country during August and September 2020. Such news can naturally shatter your dreams of buying used cars in Duncan, Greer, SC as no customer likes high prices of any commodity. In this post, we take you to the bottom of things. We first analyze the validity and reasons behind the hot news and then tell you whether you should worry or not.

Used car prices have indeed soared

As per the latest reports, used car prices have soared almost by 15% from June to September 2020, which is right after shelter-in-place norms were relaxed across the country and people started returning to their jobs. The effect was felt in used car dealerships in Greer, SC as well as used cars started selling at a rate much higher than the pre-coronavirus period.

Why did this happen?

Multiple factors came together and caused the effect. One, factories shut down almost everywhere in the world. This dried new car manufacturing completely and fewer vehicles came to the market. But Americans rarely stop buying cars and without the new option, most flocked to the used car market to get their vehicles. The high demand hiked the prices and as the trend continued, the prices followed an upward curve as well.

Two, the COVID-19 pandemic brought along economic troubles. The United States saw record-high unemployment rates during the period with many seeing reduced salaries or temporary work suspensions. A recession is a time when people cut down on their expenses. And here again, car buyers went to affordable car dealerships in Greer, SC rather than new car dealers. And lastly, the regulation to socially distance ourselves from each other evaporated all love for public transport. People wanted personal cars which are more secluded and obviously, the best option was used cars in Greer as they were both available and cheaper than new cars. The prices thus reacted as it should and the situation is as we know now.

But you should not worry about buying used cars

Even when the price is 15% higher than what it used to be in January 2017, used cars are still way cheaper than new cars. And this aspect will help your budget given the coronavirus situation. Plus, the 15% hike only seems daunting on paper. In reality, only the average price of used cars has seen that increase and you can find affordable vehicles in the top used car dealerships in Greer, SC. You will ultimately buy a specific model. And the price of the same will depend on its availability. Pick the alternative to the pricier vehicle and you will never have to burn through your cash. In short, the price you pay depends on the dealer you pick. A dealership with a large inventory like Family Auto of Greer will have used vehicles of all price ranges. So, do not let the news bother you. Neither allow the figures to scare you. Your wish to buy a used vehicle should stay independent of what is happening in the market as the best dealers help you to stay within your budget and yet, drive home the car you want.