Brown, AFP via Getty Images Don’t Abandon Ship! Most include extensions of the factory warranty. The Toyota RAV4 is in heavy demand, so deals aren’t easy to find, but Certified Pre-Owned vehicles generally come with the longest warranties and the highest level of buyer protection of all used cars. For now, however, some very popular models (like the Toyota Tacoma) are selling for more used than they did new before the coronavirus/chip shortage crisis. Those numbers should continue to go down as new vehicle production continues to improve. Used car sales are expected to remain high this year, with Cox predicting 2022 numbers at 39.3 million used vehicle sales, with 22.1 million by consumers selling to dealers and online retailers. That number included 22.2 million sales by consumers to dealerships and online retailers like Shift and Carvana. in 2021, up about 10 percent over 2020 numbers. With popular models like the Kia Telluride and Ford Bronco essentially sold out due to high demand, Americans literally switched gears and started heavily buying used cars.Īccording to auto industry analyst firm Cox Automotive, 40.9 million used cars were sold in the U.S. They took this step fearing the virus would sharply curtail vehicle sales, and they would be stuck with a glut of chips.Īs it turns out just the opposite was true.Īs a result of this, automakers don’t have the chips needed to meet high demand for new cars, and most are struggling to keep up with production. When Covid-19 shut the nation’s economy down in 2020, many automakers canceled orders for the semiconductor chips used for everything from car radios and engine management systems to chip-enabled car keys. Mario Tama/Getty Images Why are Prices so High? Nowadays a 2018 or 2019 Toyota Tacoma, like this one at a California CarMax store, sells for more than it did when new, which is not historically normal. When the supply of new vehicles dried up in 2020, the prices of used ones started to soar. Most of the important things to watch for haven’t changed in years even as vehicles have evolved, but the abnormal trajectory of used car values is a very recent phenomenon. With too many buyers seeking too few vehicles, it’s more important than ever to be a savvy consumer, which means knowing the lay of the land, where to shop, what questions to ask of vehicle sellers and how to inspect your potential new ride. In fact, some of the vehicles on our recent Best Used Cars Under $10,000 list were retailing for half that amount in early 2021. Unlike the last vehicle-supply crisis during the great recession, demand hasn’t let up for cars just because they’re hard to find. If you’re in the market for a used car, truck or SUV in 2022, it won’t come as a surprise that vehicle inventories are low and prices are high. It’s about as difficult as its ever been to find a used car, with demand high and supplies now constrained for two years, but there are ways to search that can yield a quality new-to-you ride at a fair price.
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