Your Used Car Could Be Worth More Now Than Ever Before

The automotive sales landscape has seen its fair share of ups and downs throughout 2020, and while the new car market is still taking time to recover, thanks to low inventory and other issues, the demand on the used car market has gone up. This has put pressure on dealers to acquire more used cars, which means that your car could actually be worth more than ever before.

There is a rise in trade-in values

According to data collected by Edmunds, the average trade-in value for all of the cars traded in during the month of July totaled $14,066 as compared to June’s average of $12,083, which is an increase of 16.4 percent. They also noted that the average for a dealer to sell a used car, or the average days to turn, was 38.8 in July compared to 44.1 days in June, which is a 13.3 percent decrease. It’s safe to say that the demand for used cars is on the rise, but what does this mean for you?

Edmunds’ Executive Director of Insights, Jessica Caldwell, stated, “Dealers are willing to pay more to acquire inventory to meet the surge in demand for used cars, which is great news for car owners because it means that they can expect a higher value for their vehicle if they sell or trade right now.”

Used car buying
Used car buying | Jeffrey Greenberg/Universal Images Group via Getty Images

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How can you take advantage of the higher payout?

If you decide that you want to get into a different car, whether new or used, or you happen to have a car that you can easily sell, then here are a few tips to get the most out of your car if you decide to sell or trade it.

  • Always do your research: Whether you’re buying or selling a car, research is important. In this case, if you’re looking to sell or trade your car, then be sure to check it’s value with, Edmunds, and NADA Guides to get a good idea of what it’s worth. Just remember that the values you get are good price guidelines to follow, but the dealer you bring it to might have a different value.
  • Shop your offers around: After you get an idea of what your car is worth, now it’s time for some footwork. We advise that you get the car appraised at Carmax and Carvana first to see what they would offer, then set up an appointment with the dealer that you plan to trade the car into and get it appraised by them. The dealership will most likely match the highest offer you get in order to make a deal with you.
  • Sell your car to the highest bidder: If you plan to sell your car, as opposed to trading it in, then simply accept the highest offer that you get. The beauty of an outfit like Carvana is that you don’t even have to leave your house in order to do so as they will just come to pick it up from you.
VOLGOGRAD, RUSSIA - NOVEMBER 19, 2016: A client looks at a used car for sale at the AGAT Profi dealership. Dmitry Rogulin/TASS (Photo by Dmitry RogulinTASS via Getty Images)
VOLGOGRAD, RUSSIA – NOVEMBER 19, 2016: A client looks at a used car for sale at the AGAT Profi dealership. Dmitry Rogulin/TASS (Photo by Dmitry RogulinTASS via Getty Images)

RELATED: Is it Better to Buy a Car for Sale by Owner?

Strike while the iron is hot

While the used car market might look good now, there is no telling how long the high-demand for used cars will last. If you have been thinking about getting into a newer car or want to get rid of a car that you don’t need (especially if you work from home now), then right now could be the best time to do so.