by Admin - Posted 1 minute ago
Does anyone else feel like the last five years have been one hot mess after another of empty shelves and sticker shock? You’re definitely not alone. Since 2020, Covid started a ball rolling that resulted in skyrocketing inflation, out-of-stocks and crazy high prices for almost every industry.
As a car dealer, we’ve been keeping a close eye on things- keeping our prices as competitive as possible and using the deep roots we’ve established over the last 30 years in business to source the best used vehicles for our lots. Likewise, we’ve seen some changes in the used car industry that might make things a little brighter as we approach the summer season.
Not to jinx anything, but…
For the first time in a long time, we’re actually seeing the price of cars going down a bit. Normal ebb and flow? Not quite. You see, when more people have money to buy cars- like during the first week of tax season (which just happened), demand for cars increases and drives the price of cars up. But that didn’t happen this year. Usually at this time of the year, we’re looking at a 10% increase. We actually saw a 5% decrease instead.
Banks are missing the memo
Even though the price of vehicles is going down, banks are still tightening their purse strings. Loans continue to be as hard as ever to get. But don’t freak out just yet. Because with vehicle loans being harder to come by, that could actually decrease demand (and also prices) even more.
How do cheaper car prices help me if I can’t get a loan?
Well, if you don’t have the money saved, they don’t. Unless you decide to give us a chance!
Even during the darkest Covid times, and the following period of rising loan standards, Cincinnati Auto Credit continued to say Yes to our customers. And we still are. We still offer the same personalized attention, upfront approval and a 12-month, 15,000-mile limited warranty on every vehicle we sell.
So if you’ve been delaying that car purchase while you put up with a broke-down junker or pay for rideshare to get around town, brace yourself for a summer of affordable car prices! And as always, we invite you to give us a chance to give you a chance.