Used car prices expected to drop in 2023

Local4 News at 5
Published: Mar. 3, 2023 at 7:43 AM CST
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HASTINGS, Neb. (KSNB) - You may be able to find a used car cheaper than usual, with new car assembly picking back up. A study from J.P Morgan says used cars prices are expected to drop 10 percent. Car dealerships are trying to combat the price drop by selling those vehicles more quickly.

Some are also giving warranty value to used cars they acquire and tune up. One official says the price drop on used cars has already begun.

“What I see in this area across the board, it’s already started to kind of dip, and and which I think is a good thing too,” said Grant Pyper, Sales Manager at Tom Dinsdale Chrysler, Dodge, Jeep, and Ram. “That’s going to help bring inflation down you know and I think that’s positive to the market too.”

Pyper said, he expects the price to plateau at some point, and adds bringing inflation down a little bit will be a breath of fresh air for consumers.

“We’ve seen everything rising and now it’s going to dip a little bit,” said Pyper. “I think that consumers in general, I think that, that’s a breathe of fresh air for them.”

Pyper said, he knows customer’s income has not been increasing as fast as inflation, and the cost of products. He also said, warranty value is a key factor in which used cars are being purchased.

“They have the ability of purchasing a certified pre-owned vehicle that’s maybe is going to provide all the same values that a brand new vehicle is going to provide them, at a much less cost,” said Pyper. “So warranty value is everything.”

Pyper said, the impact of tax season has a lot of pre-owned vehicles have been rolling off the lot.

“We’re already seeing it right now,” said Pyper. “In fact, last month the month of February I think it was 77 percent of our vehicles sold were all pre-owned vehicles.”

Pyper said, it’s important that they’re able to increase their stock of pre-owned vehicles. He also says tax season is traditionally a good season for the automotive industry. Adding, with used car prices dropping people will get more bang for their buck.

He also said the average used car is being priced between $20,000 to $25,000 with the average down payment being between $2,000 to $2,500.