With Prices Dropping, Is Now a Good Time to Buy a Used Car?
Photo: Mazda
It feels like a strange thing to suggest that this current moment in history is good in any respect. But a recent report from market analysts suggests that the weeks and months ahead may be a good time to buy a used car if you’re in the market.
The Manheim Used Vehicle Value Index in the Manheim Market Report found that wholesale used vehicle prices decreased 11.8 percent over the first half of April when compared to March prices. Three-year-old vehicles were down 4.8 percent in the first 15 days of the month, and Manheim reports that prices fell in all major segments (though it notes that luxury cars and SUVs and crossovers are outperforming other segments).
Despite decreasing value, retail prices are only down 1 percent since March 16. This could be due to optimism that the economy will reopen by the start of next month and values could return to normal. For this reason, Mark Huffman of Consumer Affairs recommends shopping around at multiple dealers to compare prices on a particular used vehicle you have in mind and being willing to bargain to get the best price possible.
Huffman also points out that the dip in value means you won’t get as much out of your trade-in, which may make it less of a good time to buy a used car if you plan on leveraging your current vehicle.
Making it Last Longer: Tips for keeping your used vehicle on the road for miles to come
There are great, affordable options out there
Photo: Honda
If you decide that this is the time to consider a used vehicle, you’ll have no shortage of quality choices if nothing else. Car and Driver put together a list of recommendations if you’re only looking to spend around $5,000 on a used vehicle that includes reliable favorites like previous-gen versions of the Ford Ranger, Honda Accord, Toyota Sequoia, and Jeep Wrangler.
For something a bit higher in price and more contemporary, iSeeCars released the results of its Best Affordable Used Cars Study, which found the 2012 Honda Civic to be the best used car under $10,000, the 2012 Ford Expedition to be the best used SUV under $15,000, and the 2013 Chevrolet Silverado 1500 the best used truck under $20,000.
The study also found that the 2015 Mazda6 was the best option in seven of 20 major metro areas, making it a safe bet with an average used price under $13,000. All of the vehicles recommended in the study are from within the last 10 model years, which means you could still be looking at a car, truck, or SUV with modern styling, convenience features, and infotainment and safety tech.
So is it a good time to buy a used car? That largely depends on your situation, your circumstances, and your needs. While you should be doing your best to shelter in place as much as possible, the post-pandemic market could provide a nice opportunity to upgrade to a new-to-you vehicle.
More Great Used Vehicles: See which cars, trucks, and SUVs topped the KBB.com Best Resale Value Awards
Kyle S. Johnson lives in Cincinnati, a city known by many as “the Cincinnati of Southwest Ohio.” He enjoys professional wrestling, Halloween, and also other things. He has been writing for a while, and he plans to continue to write well into the future. See more articles by Kyle.