Dealers Paying More for Used Cars

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A Good Time to Sell?

In general, Americans have been paying less for used cars than they were a year ago, but that is changing. Cox Automotive, the parent company to Kelley Blue Book, also owns Manheim Auctions. Its Used Vehicle Index tracks what dealers pay to restock used car lots at auction. Used car prices were up an average of $164 dollars last month and further increases seem to be coming.

The retail price of used cars tends to track with what auction prices are doing, so when auction prices rise, so do the prices on used cars, meaning that your used car may be worth more today than it was yesterday. Plus, high interest rates have made borrowing money more expensive, but interest rates are predicted to drop, perhaps as soon as this month.
Economists estimate that mortgage rates will begin to fall once the Federal Reserve starts cutting rates and could be as low as 6.6% by the end of Q1 2025. Meanwhile, the used car supply chain has been slowly recovering since the end of the pandemic and many consumers have held off on new purchases until now. So, while used car values are on the rise, lower prices on borrowing could mean it is a great time to trade in or sell that older car in your garage.

According to Bankrate, "Tightened supply can mean that drivers and dealers alike could be looking to buy your car. This is especially true as the total supply of unsold used vehicles on dealer lots across the U.S. is down eight percent compared to last year."

Trends Favor the Seller
With less used cars currently available on lots, dealers are looking for your car. Cox Automotive says that "the lower the price point, the smaller the inventory." Currently, inventory remains low and that is great news for sellers because dealerships are looking to rebuild their used inventory.

As of this writing in September of 2024, used car prices are only up slightly but a number of signs indicate that prices will continue to rise. If you are thinking of selling your car, there are several options for you. These include selling privately, selling to a dealership, trading in the car to a dealership, or selling or trading to an online car-buying website.



Sell to a Private Person
While a private sale requires more time and effort on your part, you can sometimes make more money on the sale and avoid dealer costs. Kelley Blue Book is an excellent source when it comes to finding out what your car is worth. The KBB website can help you estimate the true market value of your used car. Then you'll need to take out a local advertisement for the vehicle or use eBay Motors or Facebook Marketplace to get the word out about your car.

Trade In
If you are trading in your car at a dealership, fix any mechanical problems and clean up the vehicle before showing it to the dealer. Use an online value calculator to get a good idea of what the dealer will likely give you in trade for your car. Make sure you lock in the amount the dealer will give you in trade before negotiating the price of your new car.
Sell without Buying
You can also simply sell your car to a dealer without buying a new vehicle from the dealer. This is a quick and easy way to sell your old vehicle. The dealer handles all the paperwork, transfer of title, and so forth. If you go this route, take your car to several dealers to get a few offers so you can get the most for your car.

Get a Cash Offer Online
You can get an instant cash offer that is good for seven days from Driveway. We've got a tried-and-true system for getting you a guaranteed, no-haggle price for your vehicle. Driveway evaluates each vehicle based on extensive criteria to provide an accurate representation of its value on the day it was appraised. We review the unique options, history, and condition of your vehicle and compare that to retail and wholesale transactions of similar vehicles. 
We partner with the most reliable names in the automobile industry to evaluate your vehicle's condition, history and equipment, then compare it to similar vehicles in your area. When you accept our offer, we'll come out and pick up your car and bring you your new car when you buy from us. It's the easiest way to sell or buy a car!

With used car values on the rise, now is a good time to contact Driveway.