Why Are Used Cars So Expensive in 2022?
Recently, consumers have felt the pressures of increased costs in essentially every facet of their lives. Automobiles have been no different, and as such, the average price of cars has risen noticeably over the past few years. But why are used cars so expensive in 2022?
Many customers may feel uneasy with the high cost of cars, but it is an unfortunate consequence of a limited supply of vehicles unable to meet the demands of car buyers.
Why Are Used Car Prices Rising?
Each day, auction houses update the going rate for each model. As Galleria BMW and others source used cars from these auctions, the final pricing for vehicles is dictated by the overall market conditions. As basic market principles dedicate, when demand is high, prices will rise.
Issues with the global supply chain are still being felt to this day. What started around two years ago is finally beginning to ease up, but its impact on production costs and outputs is still noticed nationwide.
Global Affects
This impact is twofold when it comes to the vehicles sold at your local BMW dealer. As shortages cause factory outputs to dwindle, fewer new cars are available on the lot. With no change in the number of buyers, the low supply of new cars does not meet the demands of buyers. To bring balance to the market, prices are increased just enough to lower overall demand. So while prices may be higher, new cars are selling at the same pace as before.
In turn, this impacts the used car market. With people still needing to get out of their leases or simply wanting to upgrade cars, the low new car supply forces buyers into the used car market. Similarly, as the demand for used cars increases, supply struggles, and prices climb.
Thankfully for consumers, pricing can be very fluid and affected by many economic factors. As manufacturers reach their pre-pandemic outputs, more new cars will be available, relieving the pressures on the used car market. As such, you won’t have to wonder why used cars are so expensive for much longer.
Why Buy From Galleria BMW
At Galleria BMW, we understand that people want to know precisely what they are purchasing. We believe that explaining both the pros and sometimes cons of considering an upgrade to your vehicle is the first step to earning a long term relationship with each customer. Buying a used car in general can be daunting, but we add ease to the process.
Galleria BMW strives to be fully transparent with every customer. We offer a copy of the full itemization vehicle inspection report done by our technicians, a current Carfax, an auto check analysis, as well as a tour of our service center and concierge services. Used vehicles are priced daily to the market, so our customers can make purchase decisions with confidence.
If you are looking for a new car in the Diberville, MS area, we welcome you to experience the Galleria BMW difference with our incredible team!
