It’s good news and bad! According to an article last week in the LA Times, buying a used vehicle these days is going to cost the consumer more than it might have just six months ago! Take it from us, it’s true!

The bad news: With new car sales having declined dramatically in recent months, the demand for used cars has increased. As a result of this increase, more dealerships than ever before are trying to fill their lots with used vehicles which they typically source from rental agencies, through customer trade-ins, and at auctions. Unfortunately for those dealers and for the consumer who is looking to buy a used car, two things are happening due to our current struggling economy. First, an increasing number of consumers are trending toward keeping their cars longer. Second, and due to a decrease in consumer and business traveling, rental agencies are keeping their vehicles for longer periods of time, and not trading them in for replacement vehicles. These two factors combined make far fewer vehicles available to dealers who so desperately need them for their used car customers. Fewer vehicles being available and more consumers looking to buy those vehicles is driving the overall price of used cars upward which then forces the consumer who is looking for a used vehicle today to pay more than they might have just six months ago for the very same car! Candidly, it’s not great for dealers either. They know they’re overpaying for cars!

The good news: Higher prices for used cars might be an indicator of a perk in the economy, and could create an increase in new vehicle purchases. A strong price for used cars means that consumers are receiving more money for their trade-ins and more equity than they would have those same 6 months ago. As a result, anyone who is thinking of trading in a vehicle now is in a better position than they would have been a few months back, even those with large 8-cylinder SUV’s!

Fortunately, DriveWise Auto has relationships with close to 300 different vehicle suppliers. Our supply is almost never limited. We have access to each of their inventories, their trade-ins and the vehicles that they buy at auction. This puts DriveWise Auto in a position where we have access to thousands of used cars. If a client of ours is looking for a used car, chances are that we will be able to leverage those relationships and our network to find that vehicle as opposed to a traditional dealership that is limited to their own inventory, trade-ins and vehicles they buy at auction. Additionally, and by leveraging that network of suppliers and their need for used inventory, we have the ability to provide excellent trade-in values! Pair that with the new inventory we have access to, and those who choose to buy or lease through DriveWise Auto are guaranteed a great deal, new or used!