Demand for used cars is low but prices are still high

Last March witnessed a drop in demand for used cars, although prices were not affected by that decline and are still stuck in a sharp rise in light of the recession and low consumer demand in their demand for them. Car dealer contracts, but during the past month prices continued to rise.

Demand for used cars decreased in March

CNBC reported that during the month of March of 2022, sales of used cars less than ten years old fell by more than 27% compared to the volume of used car sales in March of 2021, according to the CoPilot car shopping app   that tracks Dealer prices nationwide, where the average price during the same time jumped 40% to $33653.

With regard to new used cars (ages 1 to 3 years), the volume of sales in March also decreased by 31% compared to last year, taking into account that the average price of $ 41,000 is higher by more than 37%.

According to the latest reports and research of the CoPilot application during the first months of 2022, the prices of this age group of cars decreased by 3% in the first two months, but returned and rose again during the month of March, in light of the continuing challenges of production for new cars and the instability of the global economy against the background of The crisis of the war between Russia and Ukraine.

The upshot of the above is that consumers are taking a lot of time while buying used cars, as the average time spent searching for a car has jumped by 93% from 89 to 171 days since March 2021, which has resulted in dealers’ stockpiles of year-old cars returning to 3 years to pre-epidemic levels.

The price of used cars continues to rise

Despite the low demand for used cars , prices are still high, and experts say the reason is that car dealers are still suffering from low supplies of new cars, which could end up having many potential shoppers for new vehicles to buy Used cars instead, according to the CoPilot app.

“With so many new vehicles available for purchase and sale in nearly all parts of the country, dealers continue to see the rise of used cars,” said Pat Ryan, CEO of CoPilot.

“The bright side of the continued rise in used cars is that it provides consumers who own an additional car a good opportunity to sell it and benefit from these record prices,” Pat Ryan continued, stressing that these prices on offer only occur once in a lifetime, as he described it.