A once-in-a-lifetime set of circumstances brought on by the COVID pandemic has created a red-hot used car market. Ongoing issues with new car production and hordes of car buyers rolling in stimulus cash have turned the used-car market on its head, leading to an inventory shortage on a national level. In turn, used car prices have soared, which means if you’re interested in selling a used car near El Paso TX, there’s never been a better time!
Even as COVID-19 restrictions are being lifted and pandemic rules are easing up, things aren’t easing up in the automotive sector yet. Months after the factory shutdowns and dealership closures, it seemed that things were picking up for the industry. Dealerships re-opened their doors, manufacturing resumed, and car shoppers were ready to spend money. Then, a pandemic-produced shortage of semiconductors (microchips) struck, causing more upheaval and substantial insufficiencies in inventory.
The almost total shutdown of the rental-car business last year is a contributing factor too. These companies usually add a steady stream of cars to the nationwide used-car inventory every 12-18 months when they refresh their stock with new models. But when rental cars became unnecessary during stay-at-home orders, many places quit buying new cars while at the same time selling off big chunks of their existing fleets. Thus, fewer rental cars are entering the market now, and experts believe this trend will continue for a while.
Data from several sources shows a drop in new-car inventory, but how does that figure into used car information? When the price of new vehicles rises but inventory declines, car shoppers will opt for used instead. Therefore, when used-car supplies fell, prices catapulted, and demand shows no signs of diminishing. What’s left is a classic example of supply and demand.
Since demand is high, it’s a seller’s market. Exactly how much you can get for your used car depends on several factors. The age, mileage, brand, condition, and features of the vehicle will affect its value when selling or trading in here at Fiesta Kia and other dealerships. The desire for a specific type of vehicle will typically have an impact on its value as well. For instance, big SUVs and full-size pickup trucks are in high demand right now, but the clamor for sedans is waning. However, with all the bottled-up longing from the pandemic, prices are high all around, which is good news for sellers.
There are some different ways to sell your vehicle with pros and cons for each. Some are easier than others but may not yield as much profit. On the other hand, you may want to get rid of your old ride and be done with it as quickly as possible.
You can hypothetically get the highest price by selling a used car near El Paso TX on your own, though it’s a huge undertaking. You won’t only be spending a great deal of time cleaning and preparing the car and rounding up a lot of paperwork; you’ll have to meet with the buyer to complete official papers.
If you want to get the highest price for your vehicle from an individual, having a well-documented service and repair history is essential. Collecting all or as many documents as possible is recommended, so that you can share them with would-be buyers. If you’re the first and only owner, presenting the initial purchase papers can net you a bit more cash since one-owner cars are typically worth more than those with multiple owners.
A new way to sell your car is the instant cash offer (ICO), which still gets you a reasonable price but without all the bother. You can accomplish this over the phone, online, or in person at the dealership. Provide the car’s license plate number or VIN and a description of its condition and mileage, and you’ll get an instant purchase offer. The more detailed your description is, the more probable the first offer will be the amount you receive.
If you want the easiest way to sell your car, offer it as a trade-in to the dealership from which you’re purchasing new, such as Fiesta Kia. You may not get as much as privately selling it, but it could save you a bit or a lot of tax on your sale.
In many states, you only need to pay the difference between the trade-in value and the price of your new vehicle instead of the car’s total purchase price. If your trade-in is worth a lot, the amount of sales tax savings can be substantial.
There are several reasons why dealerships don’t offer the highest price. Firstly, all the sale and title transfer paperwork is taken care of for you, saving yourself significant time and inconvenience. Secondly, the dealership will refurbish and advertise the vehicle for resale, which costs more money.
If you’ve been pushing back selling your old car, don’t worry! Your procrastination may have helped you get a higher offer on it. The current market conditions are yours to take advantage of to free up the garage or curb space and fill up your pockets! See us at Fiesta Kia, 7400 Lomas Blvd NE in Albuquerque, and let us help!