For dealerships looking to increase their used vehicle inventory, they may want to share a message from Kelley Blue Book to consumers — and that is that now is the perfect time to sell or trade-in your car.
The message that customers could receive a higher profit for their vehicle now, compared to 2020, may serve as a good incentive for dealerships to increase their own inventory and potentially sell more vehicles.
“Used-car prices are up 18% year-over-year, meaning that a used car sitting in someone’s garage right now is currently worth on average nearly one-fifth more than it was last year,” said KBB in a news release, adding that “vehicles that were retaining 55% of their value a few months ago are fetching 60% to 65% of it now.”
In the United States, data from vAuto indicates that there are approximately 2.34 million used cars available in America today — which is more than 530,000 fewer than just one year ago in 2020, and about 430,000 less than during the same period in a more normal 2019, according to KBB.
For dealerships, the circumstances may serve as a good argument — and a huge opportunity for consumers — thinking about selling or trading in their current vehicle.
“Dealerships have fewer used vehicles to offer right now, but people are still buying cars and the demand is growing,” said KBB. “Increased vaccinations are leading to the world slowly reopening, and when combined with boosted disposable income from government stimulus programs designed to kick-start the economy, people are shopping for cars again in droves.”
And the situation is similar in Canada – the demand is evident.