Why Used Car Prices are Going Up, by Eric Peters

There are virtues in simplicity. From Eric Peters at ericpetersautos.com:

An unprecedented thing is happening – and it isn’t the attempt to inject every healthy American with “medicine” (sic) their health doesn’t require.

It is that used cars are . . . appreciating.

Normally, they depreciate – a fancier way of saying they lose value. Traditionally, almost immediately – and ongoing. As you drive, the less it’s worth.

All of a sudden, used vehicles are increasing in value – or rather, cost. To a degree never seen before. The Manheim used car index – which works kind of like the consumer price index applied specifically to used vehicles – notes an almost 50 percent jump in the indexed value of the average used vehicle over the past year.

With the spike – literally, it’s almost a vertical ballistic trajectory – beginning right around the beginning of this year, interestingly enough.

Even more interestingly, the spike is general.

It is one thing for a specific  make/model used car to go up in value. For example, a version of a car – or truck  – that people like better than the new version of the same thing. Which is now a different and perhaps not as desirable thing.

Or a more expensive thing.

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3 responses to “Why Used Car Prices are Going Up, by Eric Peters

  1. Interesting trend. Perhaps not the only area where people prefer simple utility instead of over complicated and error prone tech.

    Like

  2. Supply and demand. Duh.🤪

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  3. Supply and demand. Duh.🤪 The vehicle I bought one year ago has appreciated $4000 over what I purchased it for. Go look at car dealers. Nothing there.

    Like

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