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Do you know why those prices have increased? I naively would've expected those prices to drop due to COVID, not increase. Also, why would one still buy a pre-o
by breakingcups 6y ago
Do you know why those prices have increased? I naively would've expected those prices to drop due to COVID, not increase.
Also, why would one still buy a pre-owned vehicle if a new vehicle is available for a very similar price?
- daniellarusso 6y agoSo, the current ‘joke’ is, buy a brand new vehicle, wait a month for its value to appreciate, then sell it back to the dealership. My guess on the reason for the pricing increases is several factors: At the beginning of the ‘shutdown’, it affected auto auctions, where dealers obtain a decent amount of their pre-owned inventory, besides trade-ins. Actual manufacturing shutdowns decreased new car outputs The rescue package allowed for a substantial jolt for vehicle financing, and it is not uncommon now for people to finance a car for a 6 year term. There are also 7 year terms, now. So, awash in finance money and limited supply.