The car market went crazy over the pandemic, with prices for some used vehicles increasing as much as 50% Year Over Year. Much of this was driven by components for new vehicles being unavailable, leading to long waiting periods which drove more consumers to the used market, spiking demand and prices. The big question on a lot of consumers minds is if the insanity has stopped, and if now is the time to get into a new vehicle.
https://www.cargurus.com/Cars/price-trends/
While according to CarGurus, the overall vehicle price index has dropped approximately 10% in the last 90 days, they’re still up a whopping 34% since September 2020
So what to do if you absolutely need a new vehicle? With prices still dropping quickly, consumers are in a good position to negotiate lower prices with dealers who see this trend, and are hoping to off-load their inventory before prices drop further. Additionally, many private sellers who may have over-spent on a vehicle during the pandemic may be struggling to make payments, and therefore be highly motivated to sell (however if you do decide to buy from a private seller, be sure to get proof they have paid off the note on the vehicle before taking delivery, or you could end up responsible for the balance).
Do your research, and don’t be afraid to negotiate a much lower price than what the seller lists if buying from a dealer. If buying from a private seller, also request the ability to bring the vehicle to a trusted mechanic for an inspection as seemingly small issues could add up to big repairs that can quickly turn a good deal into a bad one.