Now May Be A Good Time To Sell Your Car

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - April 26, 2021

Now could be a good time to sell your car amid a worsening inventory shortage at dealers. Higher wholesale prices and increasing retail prices may have consumers wondering if the notion of cars as depreciating assets still applies. However, there may be some important pros & cons worth knowing about if you want top dollar for your car or truck.

According to a recent report from the publication Automotive News, wholesale prices are up 29% so far this year. In an extreme case, an Ohio Toyota dealer reportedly paid full sticker price for used vehicles 2 years or less in age. Cox Automotive says recent used car list prices are nearly 13% higher than a year ago, with an average price of $21,343.

That said, even if you're able to get a great price for your car, the cost to replace one may be higher than you think. This is especially true when it comes to pickup trucks, which may have fewer deals than in the past. Manufacturers have even started canceling incentives. Some of these changes can translate to thousands in additional cost for buyers.

Your obligations on an existing car loan could also make selling a bad move. For example, you may find yourself with negative equity if you owe more than your car is worth. Unless you can find a car with big rebates, underwater car loans may end up increasing your cost to replace a vehicle if you roll over negative equity into the price of a new car.

If you're planning to lease, you should know that automakers have been cutting annual mileage allowances. In BMW's case, you'll find advertised leases offering just 7,500 miles per year of driving in some parts of the country. With some brands, you may even find yourself getting less for your money compared to lease deals just a few years ago.

Those in a strong position to buy may find this spring to be a rare opportunity. Brands like Hyundai, Jeep, and Subaru are still offering outstanding incentives like 0% APR for up to 84 months. If you can capitalize on high used vehicle prices and take advantage of new car deals, this could be a win-win situation if you understand the risks.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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