Selling your used car at a dealership has always been a negotiation nightmare. Rarely, would a dealership buy your used car for a fair value, and forget getting anything close to the value listed in Kelly Blue Book. Dealerships are always trying to make money and, to do that, they must pay bottom dollar for your used vehicle. The economy being less than forgiving in recent years has lead to more people keeping their used vehicles longer and not buying new cars.
The seller’s market
The lack of inventory of used cars in the current market has provided for a large increase in the price of these vehicles. Dealerships are paying nearly 30% more for a used car than in previous years. The seller definitely has the advantage when walking into a dealership with a well maintained car. Some dealerships are willing to give you top dollar for your trade. It is best to come prepared by doing research prior to walking into the dealership. Find out what the value of your car is worth using different online tools, such as Kelly Blue Book. Get trade-in, or purchase quotes from several dealerships to use in your negotiations.
The recent stir over obtaining quality used cars on the lots of dealerships doesn’t come without a price. A leading industry analyst reports the used car market may be reaching its top very soon. Jonathan Banks, an executive auto analyst for the National Automobile Dealers Association used car pricing guide, suggests this rare occurrence in the automobile market won’t last long. “For just a little bit more I can buy a brand-new car,” he says. “There’s a tipping point. I think we are getting very close to seeing that.”
What this means for buyers
Now that dealerships have been paying top dollar for a quality used car, you can expect that you will too. Dealerships have little inventory on their used car lots and are always looking to sell a new car to a potential buyer. There are lots of incentives for buyers to buy new cars with low interest rates, 100% financing options and package “add-ons” that entice car buyers to go for the new car. With the high prices of used cars, you find that leasing a new car would cost you less than buying a used car, especially if you have experienced a repossession in the past. If you can’t afford any of these high prices, wait another year as used car prices are likely to come down over the next few months.