Are Used Car Prices Going Down?
Nowadays, the new and used vehicle market seems like a roller coaster that drivers don't know when to get on or off. Many economic factors and industry trends have customers asking, "Will car prices go down in 2025?"
Lomira Auto plans to answer this question. With over forty years of industry experience, we've noticed manufacturers provide new incentives on their lineups, how high prices and rates create steeper discounts, how the Federal Reserve cuts interest, and more to predict that used car prices will drop.
New Car Incentives Lead to Trade-Ins
When fresh lineups hit a dealer's lot, automakers drum up sales with multiple enticing incentives, such as cash rebates, low-interest financing, leasing deals, and more, to get you to trade in your old set of wheels for a new one that showcases advanced tech and features.
With promotions that encourage buyers to upgrade their vehicles with new systems and features, their current ride doesn't, and many take advantage of trading in and opting for the current model as more used cars hit dealer lots, which will drive up their supply and thus bring down prices.
However, even if you ask, "Will car prices go down?" At Lomira Auto, we offer multiple discounts and deals on our lot to bring those prices down further and fit any budget a driver may have!
High Prices and Higher Interest Rates Create Discounts
Everyone knows that prices only seem to go up these days no matter where you go, but what if we said there's a silver lining to it? With auto payments squeezing budgets, automakers and dealers offer significant specials to attract budget-conscious buyers.
Also, you've probably seen dealers talk about moving inventory to make room for current models in transit and see deep cuts to sticker prices, financing, and leases. By jumping on these discounts, you can fend off high prices and interest rates that could ravish your finances!
Federal Reserve Interest Rate Cuts
Many drivers have screamed at the Feds, asking, "When will car prices go down?" We finally got an answer: Instead of growing interest rates, they cut them, and economic trends predict they will again as prices decrease.
When the Fed cuts interest rates, borrowing money for a car loan gets cheaper, making used and new models more affordable. While drivers shift towards current vehicles, the pre-owned market sees a drop in demand, prompting dealers to issue discounts and deals!
Supply and Demand: A Classic Economic Equation
Who remembers this from economics class? Supply represents what is available for customers to buy compared to what they want, which affects the market in every economy, especially in the car industry.
When the pandemic took over, the supply of vehicles went down, raising prices due to supply chain issues, shipping, and fewer workers. Used car prices began to surge, leaving many drivers out of luck when they needed a new set of wheels.
However, as supply chains started to recover and the market cooled, the supply of used and new cars began to even out the demand and balance prices as fewer drivers started to compete.
Check Out Lomira Auto!
With over forty years in the industry, we know what car buyers want and need from the market to get a fantastic used car at a price they'll love! Our inventory showcases multiple makes and models with various specials to fit any budget!
Visit Lomira Auto in Lomira and Neenah in WI today for more information.
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