Over the past couple of years, the automotive market has been a rollercoaster of high peaks and very few valleys. For many drivers looking to purchase a used car, these sky-high prices and low inventory have made for a seemingly unpleasant buying experience.

As Inflation Climbs, Markets Begin to Steady

Over the past year, inflation has helped boost used car prices to unprecedented levels. Intervention from the federal government through increased rate hikes has helped slow sales, which in turn has helped stabilize inventory and push prices down a bit.

With all these factors in play, it’s still a bit of a mystery as far as where the used car market goes from here. While prices will inevitably stabilize again, it will take some time. When exactly will this happen? Well, analysts and experts are still not sure. What is likely, however, is that once prices do stabilize, they’re likely not going to be the same as pre-pandemic levels.

Let’s take a look at what drivers can expect with the future of the used car market.

What Goes Up Must Come Down

Prices for used vehicles are at an all-time high post-pandemic. This surge in prices ranges anywhere from 30% to 47% depending on make, model, year, and locality. This exorbitant surge in prices has also caused some used vehicles three to five years old actually to cost just as much, if not more, than their suggested MSRP. While these unprecedented prices of used cars are, for the most part, behind us, the price of a used vehicle is overall still relatively high.

There is some good news for some drivers, however. If you’re looking to purchase a used vehicle over the next couple of months and even years, the price of used cars, trucks, and SUVs will continue to tick down. This is thanks to a stabilizing auto market and leveling inflation rates.

Got a Spare Car? Now’s the Time to Sell

For some drivers, owning a used vehicle likely means you’ve got an unexpected asset on your hands. Depending on the make, model, and year of your vehicle, now might be the perfect time to sell it. According to reports from popular automotive analyst companies, including iSeeCars.com, specific used models are now worth more than they were new. Topping the list is the Porsche 911 sports car. Use models that are three years old are now worth 5.7% more or $ 11,373 more than their original sticker price.

If you’ve got a used vehicle that has appreciated in value, now might be the best time to cash in on it. Selling an appreciated used vehicle now is one of the best ways to recoup high profits, as its value will likely dip down over the coming months and years.

Should You Buy a Used Car?

If you’re looking to purchase a used car, depending on your budget and the vehicle you’re looking for, now might not be the best time. While inventory is slowly starting to grow again, prices will take some time to drop as markets stabilize.

High interest rates may also be a deterrent for drivers who need to take out a loan to purchase a used vehicle. One of the best ways to leverage yourself if you’re in need of a used vehicle is by saving up a good down payment beforehand. Shopping private sellers can also be a great way to snag greater savings as well.

Final Thoughts

Markets are cyclical, and the used car market is no exception. While right now might not be the best time to get into a used vehicle, it is a great time to let one go if you have it. If you’re still indecisive about purchasing or selling a used vehicle, one thing is certain. Drivers watching the used car market unfold over the past couple of months has been a one-of-a-kind experience. As it continues to unfold, the tail end of this chapter is sure to be just as unconventional.