So, what is going on with used car prices? Was this recent little blip and drop in price just a head fake, and will it be only a drop in the bucket? If you’re in the market for a used car, now might be the time to buy because they may go up again. You might be expecting used car prices to crash, but here are some big headlines and data behind the scenes that show why that might be the case.
First of all, according to CNBC, there may not be a return to normal for the used vehicle market. There was a decline in price through the end of last year in 2022, but inventories remain low, and the pause in production might make used cars back up on the upswing.
We’re seeing that already used car prices are surging again. This is from March 30th, so whenever you’re watching this, it’s the beginning of 2023. According to the article, it says, “Nice while it lasted for nearly a year.” The average used vehicle price has been edging towards affordability for millions of people. It didn’t crash; it’s edging up slowly. The relief felt belated and slight, but it was welcome. However, the supply of used vehicles is failing to keep up with demand, and prices are creeping up again, with signs pointing to further increases.
Why is that? Well, you’ve got to remember that during 2020 and 2021, new cars were not produced at the same volume as in the past. So now, in 2023, a three-year-old used car is a 2020 model. They hardly made any new cars in 2020. Therefore, the amount and volume of available inventory are meager because we’re going through that dip where new cars weren’t produced at the time. At the same time, the demand for used vehicles is going through the roof. People want to buy used cars. Why is that? Here’s why.
New cars are now at an average transaction price of $50,000. So, the executives at Toyota say we’ll soon be paying $50,000 as the average transaction price for new cars. The average new car transaction price is around $47,480, and it’s only going up. The used car market isn’t going to slow down either. So, many factors are at play that put pressure on used car pricing, pushing them upward. Therefore, if you’re looking for a used car, that may be a problem.
It also comes in at the lower end, in the three or $4,000 range. Let’s take a look. According to one dealer, many customers can’t afford either new or late-model used cars. Some potential buyers he knows are using tax refunds to make ends meet. Used, inexpensive cars are now becoming more of a luxury. The market needs vehicles that are three, four, and $5,000 right now. Behind the vehicle shortage and inflated prices is the principle of supply and demand. It’s elementary, right? Again, they repeat that new cars are priced at $48,000, which is beyond reach for many. This will not make a return to what they call “normal.” Notice “normal” means what it was four or five years ago. That’s history.
In 2018 or 2019, there were plenty of new cars being produced. You could buy a nice new car for $30,000 to $35,000. And in 2014 or 2015, there were tons of vehicles produced. So, a three-year-old used car was easy to find in 2018, right? If you’re in 2018 and looking for a three-year-old car, 2018 minus three is 2015. In 2015, there were around 12 million to 14 million new cars produced. There were plenty of them around.
Well, now fast forward to 2023. If you go back to three years ago, few cars were produced, and the new cars had a much higher price. So, all these factors are coming together to make finding a good used car for a decent price difficult. Additionally, with the high-interest rates, one of these articles shows that the used car interest rate is now 11%. So, you went from 8% to 11% in one year, and that’s going to have a significant effect on your ultimate car payment.
If you get a three-year-old car, you can get a four-year loan, resulting in a much higher payment than a five-year loan on a new car at 11%. You know, you’re looking at monthly payments of six to $700 for a used car. New vehicles are even worse. New cars are averaging about a thousand dollars a month for the price of a $50,000 car. So, keep this in mind as you’re shopping. And if you know you’re going to need a car in the next couple of years, now might be the time to buy because it’s possible that the prices won’t go any lower and they might start creeping back up.
Get expert advice for buying or selling your car with TelAdvice.com. Our team of automotive experts can provide you with tailored advice to navigate the process with confidence. Schedule your consultation today and take the first step towards a stress-free buying or selling experience.
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If you’re selling your car in Texas, it’s important to understand the requirements to transfer the car title. Did you know you could still be liable for tickets, tolls, and other penalties if you don’t transfer your car title to the new buyer? To avoid this, let’s discuss how to properly transfer a car title in Texas and how to notify the Texas Department of Motor Vehicles (TxDMV) of the sale.
To transfer a Texas car title, you’ll need to provide the following documents to your buyer:
On the back of every car title that is issued, you’ll find a section to transfer ownership. A properly assigned title is one that has the transfer section completed in its entirety, the sale date is recorded, and the purchase price is clearly stated.
As the seller of a Texas vehicle, you must provide an Application for Texas Title and/or Registration (Form 130-U) to the buyer and sign in the seller’s space at the bottom. We recommend completing this form as much as possible to ensure all the buyer has to do is verify the information and sign at the bottom.
A bill of sale is not required to sell your car in Texas, but it is highly recommended that you provide one anyway. We recommend making a copy for the buyer and one for your records. If you have any supporting documentation to support the title transfer, such as a lien release or power of attorney, provide those to the buyer at the time of sale.
Once you’re ready to sell your car, here are the next steps to transfer your title:
Step 1: Provide the above-mentioned documents to the buyer at the time of the sale.
Step 2: Visit the TxDMV with the buyer to ensure the Application for Texas Title and/or Registration (Form 130-U) is completed and filed correctly.
Step 3: Submit a vehicle transfer notification to the TxDMV
When your Texas-titled vehicle is successfully transferred to the buyer, it’s crucial that you notify the TxDMV within 30 days of the transaction. Doing so removes your vehicle liability and assigns it to the buyer. Remember, if you don’t remove your liability from the vehicle, you can be stuck with tickets, tolls, and civil penalties that the new owner accrues.
Knowing how to navigate the title transfer process in Texas is crucial if you are selling your car. By providing the necessary documentation to the buyer and notifying the TxDMV after the sale, you can be assured that the Texas title transfer process will be smooth and hassle-free.
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Are you planning to sell or transfer motor vehicle ownership in New York State? If so, it’s important to know the necessary tax obligations associated with the transaction. One crucial aspect is completing the Statement of Transaction (DTF-802), which significantly determines the sales or use tax liability. This guide will walk you through the step-by-step process of completing DMV form DTF-802, ensuring a smooth and compliant transaction.
This New York DMV form must be completed when sales tax is not collected at the time of purchase or if the vehicle was received as a gift. A private sale may be an example of a vehicle transaction where sales tax is not collected at the time of purchase, although this is not the only possibility. If you purchased a vehicle or were gifted in New York and did not pay sales tax on the vehicle, you’ll likely need to complete the Statement of Transaction (DTF-802).
Before you start filling out the form, ensure you have all the necessary information. To complete DMV form DTF-802, you will need:
Once you have gathered the required information, locate a copy of form DTF-802. You can obtain this form from the official website of the New York State Department of Taxation and Finance, visit your local DMV branch, or click this link HERE to download the form. Complete each section of the form as follows:
Start by entering the vehicle’s identification number (VIN), year, make, and model in the appropriate fields on the form. This information helps identify the specific vehicle involved in the transaction. If the vehicle is an ATV or snowmobile, ensure the storage and delivery locations are recorded in this section.
Enter the buyer’s name, address, and contact details accurately under New Owner Information. Double-check this information to avoid any potential errors.
Enter the seller’s name, address, and contact details as the seller in the designated fields. Ensure that this information is accurate and up to date.
In this section, select the type of transaction that resulted in possession of the vehicle. If you’ve been gifted the vehicle or purchased it from a private party, select the box that best represents the situation. If you have a relation to the seller, select the appropriate box next to the transaction date.
In this section, you must provide the vehicle’s purchase price or fair market value. This value will be used to determine the applicable sales or use tax. Be sure to provide an accurate and honest assessment of the value. Ensure that you have the most current valuation of your vehicle, whether that’s done through an appraisal or using the NADA valuation resources. Check with your DMV for the specific type of valuation to provide for this form.
Review the form to ensure accuracy once you have completed all the necessary fields. Sign and date the form in the respective spaces provided. If there are any stray markings or damages to this form, it will not be accepted. Fraudulent submission of this document with intent to evade tax is a misdemeanor punishable by a fine of up to $10,000 for an individual and $20,000 for a corporation.
If any of these situations apply, the seller or donor must complete section 6:
After completing and reviewing form DTF-802, make a copy for your records. Submit this form and any other accompanying forms (title application, etc.) to your nearest New York DMV location to record the transaction and pay sales tax on your vehicle.
Completing New York State DMV form DTF-802 is an important step when selling or transferring motor vehicle ownership in the state. By following this step-by-step guide, you can ensure that you provide all the necessary information accurately and meet your tax obligations. Remember to stay informed about any updates or changes to the form by referring to the official resources provided by the New York State Department of Taxation and Finance.
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If you’re selling a car in Florida, it’s essential that you familiarize yourself with how to transfer the car title to the buyer. A car title is a legal document representing vehicle ownership and is the most important document in the title transfer process. In Florida, state law says you must provide the title to the buyer when selling a vehicle. So, how do you transfer a car title in Florida?
To get started, you’ll need the original title of your car. If you’ve misplaced your title or it has been stolen or damaged, you must apply for a duplicate title before completing the transfer. Once you have the physical title in hand, gather the following documents:
The “current” car title is the certificate that is on file with the FLHSMV. If you’ve applied for a duplicate title, the duplicate title becomes the current title once it is issued. If you find the old title after the duplicate is issued, the old title is no longer valid. The title certificate will have a section on the back that is designated for ownership transfer.
As the seller, you are required to complete this form as part of the transaction. This form records the sale and also removes your name from the record. It’s essential that you remove your name from the record, as failing to do so may result in civil liability for the vehicle (parking tickets, fines, impound, etc.).
If your vehicle was not last titled in Florida, you must complete this form and have it notarized or authenticated by one of the following parties:
If your car was last titled in Florida, you do not need to complete this form unless directed by the FLHSMV.
This form is technically for the buyer to apply for the title, but it’s a good idea to prepare it anyway, as you’ll need to record the odometer reading. In Florida, the seller must record the odometer reading, and the buyer and seller must acknowledge the odometer disclosure.
If the title is held electronically, the seller and the buyer must visit the nearest motor vehicle service center together to complete the transaction in person with a motor vehicle agent.
The FLHSMV strongly recommends completing the title transfer with a motor vehicle agent at your nearest motor vehicle service center to ensure all necessary documents are completed. You may also choose to complete this transaction on your own without the assistance of a motor vehicle agent. However, both the seller and buyer must eventually interact with or visit a motor vehicle service center to complete the transaction.
There is a section on the back of your car title that allows you to transfer the ownership. This is because there’s only one active title at a time, so once this is completed, it will be recorded in the FLHSMV system as the active title. Complete this section very carefully with the buyer, including all required information. Do not make any errors on this form. Any errors will invalidate the title and require a duplicate to be issued before the transaction can be finalized.
Once you’ve completed the ownership transfer section on the back of the car title and it’s been signed by the buyer and seller, visit your nearest motor vehicle service center to submit the documents and get your buyer a new title. Bring the following documents and items to the center:
The motor vehicle agent will review the documents provided and alert you if there are any discrepancies or errors in the process. If the paperwork is done correctly, the notice of sale will be filed, and the records updated to reflect the new ownership of the vehicle.
Transferring a car title in Florida might seem confusing, but with a bit of research, you can sell your car with confidence. For more information about selling a vehicle in Florida, visit the FLHSMV webpage.
The Statement of Facts REG 256 form is a document used by the California Department of Motor Vehicles (CA DMV) to collect additional information about a vehicle or driver-related issue. REG 256 is used for various purposes, such as correcting vehicle or driver record errors, registering a vehicle with missing information, or applying for a driver’s license with unique circumstances. It is intended to provide the DMV with all of the necessary information to decide on a particular transaction or situation.
This article explains the REG 256 form and provides a step-by-step guide on completing it, along with a link to download your own PDF copy.
Completing the Statement of Facts REG 256 form may seem daunting at first glance, but it is a straightforward process if you follow these step-by-step instructions:
First, obtain a copy of REG 256 from the California DMV website, in person at the DMV, or download one HERE for free. This form is two pages long and can be typed or handwritten neatly. REG 256 does not need to be notarized under normal circumstances.
At the top of each page, include the following information about your vehicle:
Ensure this information is accurate and include this information on both pages; otherwise, one page will be considered incomplete and invalid.
Depending on your use case of REG 256, you may not need to complete all of the sections. Here are the use cases for REG 256:
If your reason for completing REG 256 is for tax exemption purposes, select your reason for tax exemption. Be sure to include your vehicle’s current market value. Note that tax exemption between family members does not apply if the owner that sold the vehicle is engaged in the business of selling the same type of vehicle or vessel.
If your vehicle is exempt from a smog inspection, complete section B to notify the DMV when a smog certificate was last issued and why this particular vehicle is exempt from the otherwise mandatory inspection.
Is the vehicle not currently registered? If the vehicle is not abandoned but not registered and does not have registration fees due, make a section to receive a title or transfer only. Keep in mind that appropriate registration must be obtained before the vehicle can be operated.
If you’re completing REG 256 to obtain a window decal for a wheelchair lift or carrier, fill in this section. You’ll need to provide the following information:
Upon receipt and review, the California DMV will mail your window decal to the address provided on this form.
If you’ve changed your vehicle’s body, you must record the changes in this section. First, provide the current market value of your vehicle. Record the amount of money spent on changes made to the body and the date these changes occurred. Then, check off all of the body changes that apply to your vehicle. This section requires you to provide the title to your vehicle as proof of ownership.
Note: If you’re changing anything about your vehicle’s body, make sure to keep all the receipts! The DMV may request these receipts later to ensure the changes were made with legitimate parts.
Was your name misspelled on your car title? Did you change your name since the title was last issued? If so, complete the line that applies to you in section F to update your name in the DMV records. This section requires you to provide the title to your vehicle as proof of ownership.
After completing the section that applies to your situation above, provide a statement of facts to the DMV, telling them about your situation, why you’re completing this form, and what you need the DMV to do. Essentially, this is your chance to give the DMV any additional details they may need to know when reviewing your form REG 256.
Before signing, check over your REG 256 for accuracy and completeness. If you find an error in your document, do not attempt to fix it with whiteout or by writing over it. Any errors or stray marks on the page will invalidate the application. If you’ve made an error, you must complete the form again. Once you’ve confirmed all the information is correct, write your full name, phone number, and then sign and date below.
If you complete this information at the DMV, simply return the form to the DMV agent. If you are completing this form electronically, download and print the form to go along with the other required documents for your situation.
The Statement of Facts REG 256 form is an essential document that helps the California DMV collect additional information about a vehicle or driver-related issue. Completing the form is straightforward if you follow the step-by-step instructions in this article. Looking for a PDF copy of REG 256? Download one using the link below!
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