The used car market is at its craziest. With an overall increase in demand for cars and with the auto industry being plagued with semiconductor and electronics shortages along with disturbed supply chains, new car inventories have dried up. As a result, buyers had to turn towards used cars and that’s the reason why used car prices have shot up. A report from an online vehicle marketplace states that used car prices rose by around 7 percent over a span of just 4 months from December 2020 to March 2021. So, if you’re planning to buy that used Toyota Highlander for sale in your local used car dealership, well then, beware, it’s not going to come cheap.
So, that leads us to a number of questions. How do I get the best deal in today’s overpriced used car market? How do I navigate through the surging used car prices? How do ensure that I do not pay more than the car’s actual worth? Well, if these questions have been troubling you recently, guess what, you’re at the right place! We’ve compiled this article to help you understand how you can avoid overspending in an overpriced market. So, if you’re planning to buy a used car anytime soon, this is a must-read.
Hunt online
Well, the first thing you do to not end up spending too much is conduct a thorough survey of the market. Shortlist a few cars that you’d like to buy and do not limit your research just to the local dealerships. Prices of cars also vary from city to city depending upon the local demand. Hence, ensure you also visit multiple dealerships outside your locality as well and check for prices. Moreover, there are a number of online used car marketplaces where you can shop for cars outside your locality, city, and even state. Many of these websites offer door-step deliveries with no or very little additional costs. Plus, many used car websites come with certified pre-owned programs and a few of them also offer warranty schemes and that just solves all the apprehensions that you’d have about the car’s reliability.
Further, some websites even offer return policies where you can drive and test the car for a few days and return it back without being asked any questions if you don’t like it. So, for the kind of options and flexibility used cars portals offer, these websites will certainly get you the best deals in today’s overpriced market.
Do you really need an SUV or a pickup truck?
Before you start shopping, ask yourself this question. Buyers all over have gone gaga over SUVs and pickups, and naturally, prices of these vehicles have shot up. A survey suggests prices of SUVs and pickup trucks have gone up by almost 26% in the last year. And yes, we understand you want to go with the trend and get home an SUV but if you have to make a smart financial decision, you should probably look for buying a sedan or even hatchback. Nobody is really willing to buy hatchbacks and sedans. There are very high chances that you may get a well-kept sedan or a hatchback at a bargain price. Yes, you’re deprived of the presence and utility of an SUV but if you mostly drive around the city on well-paved roads, then a sedan or a hatchback should suffice your purpose. Moreover, you could just end up getting a steal deal and save a good amount of money.
Check out for low APR deals
If you are planning to buy a used car on loan, then there are chances that you may get dirt cheap APR on a few select models. To lure away buyers from new cars, automakers are offering certified pre-owned cars at very low APR rates. For example, Toyota offers an APR deal of as low as 1.9% on its certified pre-owned Camrys, Corollas, and RAV4s. While borrowing for other models might attract higher interest rates, going in for these used models will just fetch you the benefit of lower interest rates. So, our recommendation would be to look out for the models that specifically have lower interest rates on them. That’d just be a smart purchase.
Don’t rush
You have to realize that shopping for a used car in a market where the demand is ever so increasing and prices are continuously going up, you need to have patience. You cannot really rush in and buy anything that you find. It’ll take some time to get you a deal that best fits your pocket and expectations and hence, think twice before making any decision.
Trading-in your existing car
If you’re looking to replace your existing car, what could be a better time to get rid of it in the overpriced market? Trading in your existing vehicle could simply fetch you a great trade-in value. Demand and prices for used cars are higher than ever before and dealers are ready to pay for getting in used cars in their inventory and chances are that you might just end up getting a very good price for your existing car. Remember, once the shortages are over and supply chains are back on track, the demand for used cars would naturally go down and then your current car may not fetch a great value. So, trading in your existing vehicle is one of the best ways to get yourself a great deal while making the most of the overpriced market.
Consider a lease buyout
So, if you have a car right now on a lease, and if the lease contract is about to end anytime soon, consider buying it out. For one, the buyout price applicable was calculated years ago when you had signed the lease contract and the current market trends do not affect the buyout price. So for a small amount, the car could be yours and it makes much more sense than buying a new car altogether. If you’re really tired of using the same car that you have had for years now on a lease, even then we would recommend you to buy it out. Since market prices are high at the moment, you can sell the car for a very good price and book some good profits and then consider buying another car. However, we would strongly recommend you get all the math right before you make this kind of move.