Used car prices fluctuate based on market demand. A larger inventory of trade-ins at dealerships can potentially lead to lower prices.
Typically, used car prices peak alongside new car prices, especially at the start of the year or a new registration period. This is driven by high demand coinciding with increased supply.
Used car prices exhibit greater variability compared to new cars. The final price is influenced by factors such as the dealer’s acquisition cost (trade-in value), required reconditioning, and their desired profit margin. Dealerships with higher overhead costs, such as those in upscale locations, often have higher markups.
To secure a favorable deal, seek out dealerships with a substantial inventory of the specific model you’re interested in.
Comparing prices across multiple dealers is crucial. Dealers tend to favor certain models, pricing them higher. Aim to find a dealer who is less enthusiastic about the particular model you’re looking to buy, as they may offer a more competitive price to expedite the sale.
Purchasing from a main dealer usually means paying a premium for a used car of that brand. They understand that customers specifically seeking that make and model are more likely to visit their dealership, allowing them to command higher prices.
When a new model is introduced, the price of the previous, visually outdated model tends to drop significantly. However, these older models often lack the initial production issues that can plague new cars. It’s generally advisable to avoid purchasing a car, new or used, manufactured within the first 6-12 months of a new model’s release.