In early April we briefly discussed what COVID-19 is doing to the used car market, but a month further into the pandemic and we’re seeing some pretty drastic shifts in the economy. Oil prices have dropped drastically, new car sales have all but halted, and experts indicate that now may be the best time to buy a used car, but quite possibly the worst time to sell one. Salvage and used car prices are certainly shifting towards buyer favor. If you’re looking for a clean or salvage car, truck, SUV, motorcycle, or RV, now may be the best time to buy at an online auction.
Auctions are seeing more buyers
With CDC guidelines recommending minimal shopping and travel, consumers have turned to online resources, including vehicle purchases. That’s where online auctions have pulled ahead: a place where you can shop for an unmatched breadth of vehicles from your couch. Without the dangers of visiting in-person auctions or dealerships to buy a vehicle, consumers have started to recognize online auto auctions as a viable market which has led to an uptick in online auction sales.
More repossessed cars
With unemployment rates skyrocketing, many are unable to make car payments that were once a stable investment. With the economy seeing an incredible downturn into a recession, the number of cars that are getting repossessed is increasing significantly. Often, those end up at auction, leading to increased inventory and options.
Used car prices are declining
There has always been a direct correlation between new and used car pricing. With new car sales suffering drastically because of the pandemic and manufacturers slowing production in many countries, used car prices are taking a huge hit as well. Since auto dealerships are offering increased breaks and incentives for new car purchases due to declining sales, the direct effect is a drop in used car prices overall.
Fluctuating demand leads to price drops
There’s an interesting dichotomy in the used car market that’s constantly fluctuating: as demand for cars decreases with an economic dip, sellers are willing to accept lower offers for vehicles. As buyers catch on, demand increases again, in an ebb-and-flow pattern of shifting values. If you time your purchase right you can get a salvage car, truck, SUV, or motorcycle during one of these dips at a fantastic price.
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