Seller’s Market For Used Cars And Trucks Is Good News At Trade-In Time
Original Article By Jim Henry
Like new cars and trucks, it’s a seller’s market right now for used vehicles, as well.
It’s a good idea for consumers buying a new car, or buying or selling a used car, to have some idea of what’s happening in the used-car market. Since most buyers have a trade-in, the more you get for your trade-in, the less your monthly payment will be.
That’s the good news.
Wholesale used-vehicle prices are at or near “historically high” levels, for many of the same basic reasons as new vehicles, says Tom Kontos, chief economist for wholesale used-vehicle auction firm KAR Global.
“Tight supply and high demand continue to drive wholesale prices and conversion rates to historically high levels,” Kontos says in a March 29 report on wholesale used-vehicle values for the month of February.
Conversion rate refers to number of units sold at dealer-only auctions, as a percentage of the number of units offered. A high conversion rate means wholesale buyers are snapping up what’s being offered.