Car Prices in 2024: Why are More People Buying Used?

Used car sales began to rise in Q4 2023 and they show no signs of slowing down. So what’s going on exactly? Why are so many people buying low-mileage used cars and SUVs in New York and the rest of the U.S. all of a sudden?

Major World explains what’s driving the upward trend in used car and truck sales in New York and the rest of America in this article. 

Where Do Used Car Dealerships Buy Their Used Car Inventory?

Most used car dealerships like Major World get their inventory from a number of sources. These range from private sellers to wholesale car auctions, where they bit on large allotments of vehicles to get a lower price per vehicle. Other sources for low-mileage used cars on Long Island include lease returns, company cars, and rental car fleets. 

Vehicles purchased by Major World undergo our rigorous multi-point inspection process before we buy them, and a second series of checks after we meticulously detail them and place them in our showrooms and lots. Any vehicle that can’t pass our standards simply doesn’t make it into our inventory. We’re notoriously picky about what we sell and that’s why we have a reputation for quality. 

Where do used car dealerships like Major World source their cars?

  • Low mileage lease returned vehicles and fleet vehicles. 
  • From exclusive commercial dealer-only vehicle auctions. 
  • Private sellers trading in a vehicle as a downpayment on another. 
  • Company cars, rental car fleets, and repossessed vehicles. 

Reason #1: New and Used Car Prices in 2024: Shortages and Hikes 

A “perfect storm” of production shortages due to lingering COVID-19 effects and supply chain issues combined with the pressures of inflation has led to a spike in the average new car and truck price. The higher prices of new vehicles, combined with home and rent prices, shortages, and long wait times for popular models have a record number of people rethinking the whole prospect of buying a new vehicle. 

Premium used car dealerships like Major World are seeing an influx of customers on the hunt for better value for their money than most new car dealers are able to offer them right now. We can’t say we’re surprised. No one wants to pay 20% more for a new car than they would have just a few years ago. Customers also love the fact that they can cross-shop more brands and models at a used car dealership in Long Island City than they would be able to at any new vehicle dealership. 

Reason #2: Wholesale Used Car Price Drop 

The other big reason for the increased interest in used cars and trucks is that used vehicle prices are moving in the opposite direction of new cars right now. Used car prices have been dropping for months. Why? It’s pretty simple, the used car market operates like any other. Supply and demand. But the supply of used cars lags behind the demand because it takes time for the used cars people trade in to make it into our supply chain. 

Beginning in Q4 2023, there has been a well-documented glut of low-mileage used cars in the auctions and other supply sources we use to replenish our inventory. That led to a big price drop in the average bid at these auctions. “But I don’t buy 25 vehicles a time at auction! Why should I care?”, you say. Right. But WE do. The fact that we pay less for our inventory means we can sell our used SUVs and cars for lower prices now and make the same profits as before per vehicle and sell MORE vehicles. 

OK, I’m Not Reading All That. Summarize Please.

  • People are buying used cars because new cars are way more expensive than they used to be and they can’t get the models they want. 
  • Used car dealerships are paying less for vehicles right now, so they are selling them for less. Used car prices in 2024 are LOWER than usual while new car prices in 2024 are HIGHER than usual. 
  • This is a temporary situation. The used car market moves in cycles, like every other marker. You need to move if you want to take advantage of the lower prices. 

Major World For Major Value in Used Cars

Take advantage of the price drop trend in used cars right now at Major World. We offer a straightforward financing process that you can start online before you even get here (nope, it won’t ding your credit!). 

Check out our competitive inventory through our online search portal. Don’t settle for less than the very best used car dealership near the NYC Metro Area. You deserve the Major World standard of customer care. Give us a call now at (866) 614-2884.

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