Why Prices For Used Cars are Skyrocketing in Michigan
Remember buying your first car? Mine was a 72 Ford Maverick which I paid $350 for and that car lasted for 5 years. Then I sold it for $500. It is rare you make money on a used car. Prices for a new or used car can be crazy high. You have to shop around and do your homework to get a good deal. If you have been window shopping for a new car lately you may have noticed the high sticker prices, Yep, used cars are at an all-time high.
How Much Higher Are Used Car Prices?
According to fox47news.com used car prices are up a whopping 20 percent. In Detroit for instance, the average used automobile price is up more than 20 percent. That's $4,482 higher on average, according to iseecars.com. I had a few friends that sold cars over the years and they said it's better to buy a used car a year or two old, rather than a new one. because once you drive a new one off the lot it depreciates around $10,000. This may not be the case anymore.
Used car prices have been going up for a couple of years, but all of a sudden this year they have gone through the roof. And it's easy to figure out why. There’s just a shortage of really good used cars right now and there is unprecedented demand and that means prices go up," said John McElroy, host of Autoline.
Another Used Car Tip
I also learned your better off selling your car to a private party rather than trading it in, then use the cash to put down when buying another car or pocket it. Stay tuned, The market may return back to normal next year.