Would you like another sign that there is pent-up demand for brand new cars? It’s the fact that there is a shortage of used cars – as consumers hang on to their vehicles, less are available for resale, therefore the price goes up and trade-in value is excellent.
According to the NADA Used Car Guide, values vary from one model to another, but there is a general and significant increase in trade-in value now compared to three years ago. It looked at values for three-year-old vehicles.
For example, a Hyundai Elantra is up 77% to $8,875; a Chevy Colbalt is up 37% to $8,290; a Kia Sportage is up 51% to $11,397; a Ford F150 is up 43% to $22,552; a Dodge Grand Caravan is up 54% to $12,633; and so on.
The effort to acquire more used inventory should increase the sale of new inventory.
“Higher trade-in equity on used vehicles will help facilitate the release of pent up demand for a growing number of consumers making the jump off the sidelines and into a vehicle purchase,” said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. “The equity position that consumers find themselves in today is better, and in some cases, dramatically better than it was three years ago.”
RBR-TVBR observation: If paying top dollar for trade-ins is part of the business plan of one of your clients, that’s a message they should be sharing with consumers over your airwaves.