Due in large part to the pandemic, car shoppers had to deal with expensive vehicles for a long time. Even used cars were often priced much higher than average. Fortunately, prices have come down recently, and it’s possible to find many used car deals at Keyes Hyundai. Here’s why.
How We Got Here
Buildup of Inventory
Because used cars were out of many people's price range, sales dropped off. As a result, these models just sat in dealerships. Plus, due to some people buying new cars and trading in older vehicles, non-new inventories grew in several places. So, to help thin them out, dealerships started lowering prices and offering incentives.
High Interest Rates
Financing is a great way to get a car without spending as much money immediately. However, the dual effects of high interest rates and high inflation meant fewer people could afford to take on a loan, creating more of a glut.
Smaller Demand
The smaller gap between new and used car prices left many people buying new. Economic uncertainty also meant many cost-conscious people decided to lease new cars instead of purchasing them.
Lower Wholesale Prices
Dealerships often get used vehicles from wholesalers, who determine their prices based on demand. When fewer folks buy used cars and demand shrinks, wholesale prices drop. This benefits both dealerships and car buyers.
How to Benefit From Lower Used Car Prices
If you have considered buying a used car, this could be the ideal time. Inventories are healthy, interest rates are falling, and prices are much better than they were at the height of the pandemic when demand was high and cash flowed like water. If you’ve put off buying a vehicle, it’s time to see what’s out there!
Find an Affordable Used Car in Van Nuys, CA
With prices dropping, now is an excellent time to look for a used car. Visit Keyes Hyundai in Van Nuys, CA, to check out our used or Certified Pre-Owned models. They’re more affordable than you may realize!
