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Here's when new, used car prices might go down

One car expert says there could be some relief later this year.

TAMPA, Fla. — If you were hoping car prices might have become more reasonable in the new year. Think again. 

In the last few months used car prices have gone up more than 20 percent and it may be months before we see any change.

Nathan Hecht is the Founder and CEO of Rodo, an online marketplace to buy or lease new or used vehicles. He said there are two main reasons for the price increases. First, COVID-19 hit. 

"COVID shut down supply chains for a significant period of time very early on and it never really caught up," he said.

The second has to do with consumer demand.

"That demand is forcing prices up and it's important to note that prices are still high for both new and used vehicles."

Hecht says manufacturers are back at full capacity, but they are still playing catch up. 

"The reason why used car prices are so high is because consumers can't find a lot of the new vehicles they're looking for, so they're chasing the used cars and they're essentially bidding the pricing up on those cars."

If manufacturing remains at full capacity, he says relief at the car lot could be on the way. 

"We're getting to a point where there will be ample supply and therefore price correction to some extent in the coming year."

Hecht adds that there are deals to be had, partly because interest rates remain low. 

But if you're trading in a car, do your research. Make sure you know what it's worth and what incentives are being offered on new vehicles so you can get the best deal. 

    

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