LAS VEGAS (KTNV) — For the first time in more than two years, the prices for used cars are finally seeing a steady downward trend.
In the summer of 2020, used car prices began to soar to record highs, increasing by 45% over the following 12 months, according to CNN Business.
As of December 2022, CNN reports that the prices for used cars have dropped by 8.8% and many models cost about the same as a new car in 2010.
So, what's changed?
As previously reported on Don't Waste Your Money, new cars finally began rolling in again in the summer of 2020, leading to a slow but steady decline in prices that brought us to the steady price points many are seeing now.
Matthew Molhman, the owner of The Car Company, told KTNV, "All of a sudden sales shot out the roof."
Molhman says his dealership had great success when prices were at their highest, as new cars were far and few in between due to low supply.
“Just driving by new car stores, I saw inventory was low," said Molhman, "And being in the business, I was hearing how hard it was for people to get new cars.”
Jason Baucom, a local economist with the Budin Group, says a decrease in prices usually hurts used car businesses since many will seek out newer vehicles. However, Molhman says he trusted the unique situation would cause the decrease in prices to actually help his company.
Baucom said, “Customers are truly in a win-win situation."
