Time to Sell Your Car or Truck [Opinion]

If you have a used car or truck to sell, jump at the chance [Opinion]

If you want to sell a used car or truck now is the time. A local dealership recently offered to buy back a 2-year-old Chevrolet truck with just 20,000 miles on it for $ 80,000. That is $ 10,000 over what the owner paid for the truck two years ago!

A Cadillac dealer has his sales force calling customers to see if they would like to sell the car that they purchased from his family-owned dealership. He says this is the source of many of the used cars on his lot and that the buybacks do work out well. Multiple dealers of new and used cars tell us “You’ll never get a better offer than today’s buybacks.”

Automobile auctions across the country are reporting record wholesale purchase prices at their dealer-only wholesale auctions. Those higher prices are also driven by a lot less cars or trucks going to the auctions. That’s a result of dealers keeping the car or truck you traded in.

While it is a great time to sell that car you are not using, it is a terrible time to be buying any new or used car. First the chip crisis has manufactures producing their most popular models that return the most profits. So, when you arrive on a new car dealer lot and want a new Chevy Tahoe, expect to pay a premium price. In years past, you likely paid the sticker price and also got large rebates to purchase an SUV. If you can find that premium SUV expect to pay way over the suggested retail price.

Why, you might ask. Simple as the law of supply and demand.  New car dealers had 300 new cars in stock in 2019 are lucky to have just 30 new cars now. Since fewer new cars are available, you’ll pay a lot more to buy a new car now. In fact, one new car General Motors franchisee recently said, “If you don’t have to buy a new car now don’t.” That’s great advice!

Remember that your local used car lots are also short cars. Expect to find higher prices on popular cars like Civics, Accords, Focus, and Pickups. Again, the higher prices are being driven by a reduced supply and another factor. That factor has rental fleet buyers showing up at auctions and driving up the bidding for clean, used cars. Rental car companies are also selling cars. Since they sold off so many cars when the pandemic hit, they don’t have inventory. You are also paying three times the amount you paid previously just to rent a car from the big auto rental fleet corporations.

As that Cadillac dealer told me, “We won’t be able to have enough cars and SUVs on our lots until the chip shortage crisis is over.” Meanwhile GM is posting record profits!  It has also been said by new car dealers that the factories are only producing the most profitable cars and trucks. Cheaper cars just aren’t available to dealers.

Having troubles in the sale of cars and trucks is a major hit on the local, regional, and any state’s economy. The sales taxes generated are a massive infusion to a city or county general fund. They help pay for police and fire services and other lesser-known services as well. Auto dealers are also major donors with local charities and giving might also be down.

Americans need a healthy automobile industry. It is a major source for our GDP and a major employment force for direct and indirect jobs.

The advice from dealers “If you can wait to buy a car, do it. If you can’t — or won’t wait — you’ll pay more.” Selling your used car or truck? That’s a different story. Now is a great time to sell that used car or truck as prices for that vehicle are the best ever for sellers.” Buckle up and drive safely and have a safe holiday season.