RENO, Nevada (KOLO) – Charlene Manzer says she’s been on the hunt for a used car since her current vehicle broke down. And it was not easy. “It’s quite difficult,” says Manzer. “Uh, the prices are outrageous,” she said. Manzer thinks she may have found a winner here at Budget Motors. But she is one of the lucky ones.
Affordable used cars are hard to come by these days due to low inventory. A lot of people hang onto their cars. Car rental companies sold their inventory last year to stay afloat. And there is a disruption in the microchip supply chain. This has resulted in a wait for new cars and some customers decide to go the used car route. It’s the old economic story of supply and demand that has caused the cost of a used car to jump 30% from a year ago.
If you think there is a great deal out there … “To answer your question, the answer will usually be no,” says Simon Amadin, owner and director of Budget Motors.
Amadin says prices won’t stay that high forever. The country’s largest wholesale auto auction would agree, saying buyers paid slightly less for the vehicles last month. He expects the cost of a used car to stabilize by the end of this year or early 2022.
Inflation, another contributing factor, could also be under control at this time. Until then, he says to take a solid step before heading to the parking lot.
“If you or a loved one is definitely able to afford a car and you need it, just be sure to do your homework first,” says Amadin. “Make sure you have a good idea of what you can afford to deposit and make sure you can make the monthly payments,” he says.
If you consider yourself a great negotiator and can beat used car prices right now, think again. The internet is another trend in the used car industry. Dealers here as well as private car dealers can see what the list price of a vehicle is and ask for that price. Being able to negotiate a thousand or two on the price of that car is a thing of the past.
Especially now with such limited used car supplies.
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