Right Now Might Not Be The Time To Buy A Used Car

Over the past few months, it seems like small businesses and large businesses everywhere have been taking massive hits. Car dealerships were in this category for a while, which actually made it a good time to buy a new or used car. At the beginning of dealership closures and general travel restrictions, the demand for cars was dropping rapidly, and many people were laid off or furloughed due to the COVID-19 outbreak. In the past few weeks, however, demand for used cars has suddenly skyrocketed, meaning dealerships aren’t hurting as badly for sales as they were a few months ago.

Increased demand makes for a bad time to purchase

While dealerships were struggling to get sales, the prices decreased enough on used models to make the past few months a great time to buy a car, but as thing start to reopen and people have begun to settle into the ‘new normal’ the demand for use cars has increased more than ever.

A banner in front of a dealership says, by appointment only.
A car dealership offers appointment only car sales after the COVID-19 pandemic shut down their showroom | Michael Siluk/Education Images/Universal Images Group

Car dealers may begin to struggle to sell new cars over the next few months, and it is possible that because the demand for new cars is unsurprisingly low, that manufacturers may offer incentives to help promote new car sales.

High demand means high sales

As demand for used cars increases, there are less and less used cars available on the market, and many dealerships are being picked clean of the best options. When you’re buying a car that is new-to-you, it is important to pick a car that you’ve researched well and really love, because even at a fraction of the new-car price you are still committed to your car for some time.

Dodge vehicles on display at a car dealership
Dodge vehicles for sale at a dealership | Scott Olson/Getty Images

Now’s the Right Time to Buy a Used 2005 Toyota Prius for Under $5,000

Because the economy is currently in a recession, that means more people are looking to buy more affordable used cars instead of the latest and greatest models to hit the market, and as the summer comes to an end that means that 2020 models will be competing with new 2021 models on the new car lots – at least if they aren’t on the long list of cars with an expected delay in production.

Buying a car that is new for your family is all about timing, and picking a car that is right for you. Just because the demand for used cars is high doesn’t mean you can’t head to the dealership if you’ve been planning on buying, it just means that the deals for cars aren’t as good as they have been after the past few months.