Used Car Prices Fall 2023: What Does it Mean for Iowa Buyers?
If you're in the market for a used car this fall, you may be wondering what to expect for prices and availability, especially in Iowa. The used car market has been chaotic since the pandemic began, leaving many buyers frustrated across the country, including those frequenting Iowa used car dealerships. Will prices come down to earth anytime soon? Let's take a deep dive into the current state of the used market.
Wholesale Prices Show Signs of Bottoming Out
Industry data from Cox Automotive shows that wholesale used car prices rose slightly in August 2023 after declining most of this year. This trend isn't just national; Iowa's used car market has felt these fluctuations too. Prices remain nearly 8% higher than August 2022.
What does this mean for used car shoppers? Retail prices generally follow wholesale price patterns, so consumer prices at Iowa used car dealerships are unlikely to drop substantially in the near future. However, experts say the rate of price increases has slowed, providing some relief.
Availability of Used Cars Still Low
One major factor keeping used car prices elevated is low inventory. New car production cuts during the pandemic translated to fewer trade-ins and lease returns, reducing the inventory of used vehicles. Dealerships in Iowa and across the country continue struggling to stock enough used vehicles to meet customer demand. Expanding your search radius can increase your chances of finding the right car.
Waiting for the Right Deal Can Pay Off
While prices probably won't plummet anytime soon, analysts say patient buyers can score better deals by tracking listings for a few weeks or months, especially in Iowa. Know the market value of your desired model and be ready to grab it when an acceptable vehicle and price comes along at an Iowa used car dealership.
The Role of Rising Interest Rates
One extra challenge for used car shoppers in Iowa is rising interest rates on auto loans. Rates for used cars jumped 11% in the second quarter of 2023 according to Edmunds. This can increase monthly payments, making financing your used vehicle more costly.
With the used market still volatile post-pandemic, finding a good deal, even in Iowa, takes more work than ever. By staying patient, informed, and flexible, you can navigate today's used car climate.
When in the market for a used car, stop by Carousel Preowned. Carousel Preowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.