According to Edmunds, the average value of a used car went up 16 percent in the month of July alone. But why?
The global coronavirus pandemic is causing an unusual side effect—the price of used cars is going through the roof.
Let’s connect the dots.
When COVID-19 hit essential workers who still had to commute to jobs started avoiding public transportation and ride-sharing services if they could, it led to bizarre scenes of abandoned subway stations, nearly empty buses and Uber drivers desperate for fares.
And even as parts of the country reopens, it looks like workers are not enthusiastic to return to public transportation.
That concern along with uncertainty about the economy has led to more people buying used cars. And that has caused an unusual situation.
Cars are notorious for depreciating in value as soon as you drive it off the lot, but according to Edmunds, the average value of a used car went up 16 percent in the month of July alone.
This boom has car dealers working hard to find used cars.
According to reports, dealerships are now running ads and cold calling drivers trying to convince them to sell older vehicles.
If you are looking to unload an old car— now might be the perfect time to trade-up!