You may even have been offered a lot of cash to trade in your vehicle, but you should be careful, especially when looking for a used car in the market.
Experts said the market needs to reverse, and if it does, people could be upside down on these overrated used vehicles.
The pandemic has hit the auto industry hard. At one point there was pretty much no production. It has been slow to recover since then, with stocks low and traders paying more for trade-ins.
But that also means prices have risen – 42% for used cars since the pandemic began. New Mexico threatens a vehicle bubble.
“Once the supply chain is back online and in good shape, our used car prices will likely drop in the future,” said Reilly White, UNM special professor of finance. So it’s definitely a big financial problem. “
The choice is certainly no longer what it used to be.
White said the number of cars made in the country fell 20% less in 2020 than the previous year. This year it fell even more.
He said a lot of the problem is with the supply chain. But of course that also had an impact on the buyers.
“When we talk about ‘oh my god, I can trade in my car today and get this huge sum of money’ before about 44% of trades were in negative equity in April 2020, according to a recent report from KPNG, that means you got the car owe more than your car is actually worth, and that’s a really, really big deal. “
White said the experts’ best bet is that the market will rebound. But the question is when?
He said the forecast was in the next six months to a year and a half.