If you’re in the market for a used car, good luck. Prices have risen so dramatically over the past year that my beat-down 2004 Toyota Camry, with its dents and chipped paint, could go for more than $6,000. That’s far more than it’s worth — and much more than I bought it for.
Car owners across the country have made similar discoveries. They’re able to ask for more than they ever thought they could get because someone will pay it. Buyers have no other choice. Used car prices shot up across the board by 30% in 2020, according to the consumer price index, with the average price hitting $26,500 (you’d be lucky to find a $6,000 price tag like mine).
Take, for example, Josh Martin, a used car owner who approached a car dealership toward the beginning of the pandemic to try and sell his old Nissan Armada. The dealership offered him around $19,000 for it, which he didn’t think was enough, so he held onto it, he told the Wall Street Journal. A couple of months later, in early June, the dealership called Martin back and asked him if he’d be willing to sell. This time, the dealership offered him $28,500.
All Martin could think was to “stop what I’m doing immediately, get in the vehicle, and get up there as fast as I can. And maybe have it towed up there just so I don’t risk blowing the motor on the way to the dealership,” he recalled.
But how much longer will these prices hold? In July, used car prices only increased by 0.2%, and wholesale prices (what dealers pay at auto auctions) dropped. New car prices are also beginning to level off as manufacturers get back to their pre-pandemic production levels.
So, if you’re looking to cash in, now might be the time to sell. And if you’re looking to buy, my $6,000 offer stands.
