Today’s Used Car Values Have Jumped Up

Used Car Prices Skyrocketing Again
So, what the heck is going on with used car prices? Remember, back in 2019 and 2020, used car values spiked through the roof and they stayed high for a number of years. The last couple of years, it seemed like they trailed off a little bit. They didn’t actually go down, but they weren’t quite as dramatic. Well, in the last 30 to 60 days, we are seeing used car values again go through the roof. And here’s why: there are auto manufacturers and dealers who are expecting tariffs to affect not only the price but the supply of new vehicles.

The Tariff Effect on Dealer Behavior
What that does is put pressure on dealers and even buyers to try to get their vehicle purchases done before the tariffs start to raise prices. That’s putting a leading indicator on used vehicle values. So, if you have a vehicle that is a car you’re looking to trade in, now might be the time to do it.

Good Time To Buy or Trade
If you’re looking to buy a car and you think the prices will go up in the coming months, you might want to move up that purchase to a sooner date. More importantly, if you have a vehicle where you have an upside-down equity or negative equity scenario, you might want to look at seeing if the values have changed. Even if the dealer offered you, let’s say, $20,000 for your car a month or two ago, it might be worth $21,000 or $22,000, which could knock a couple thousand off of your negative equity situation to get you able to get rid of that vehicle, trade it in, and do a lien release.

Learn More & Stay Updated
If you have more questions about how to get a lien release or how to transact a short sale on a vehicle, the used car market is dramatically different even this week versus what it was a month ago. And if you have any kind of activity planned for a used vehicle—buying one, selling one, trading one in, or doing a broker deal—you might want to take another look at the scenario to see if it’s different than the last time you checked.

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