Typically, a new car is considered a bad investment because it loses a big chunk of its value the minute you drive it off the dealer lot. That’s unless you bought that new car during the pandemic. In that case, you likely made an amazing investment because you could now possibly sell your one-year-old car at a profit or, at least, get back nearly what you paid for it.
Normally, a dealer selling a one-year-old used car will get about 80% to 85% of its original price, according to Edmunds.com. But, according to the site’s most recent figures, car dealers can now sell one-year-old used cars for about 95% of the original price. Don’t expect to get these sort of markups if you’re selling a car yourself or trading it in. The used car values in Edmunds’ analysis reflect what a used car dealer could sell the car for.
This weird situation is not likely to end soon. Even if car companies are able to refill their supplies of computer chips, the level of production will take a long time to catch up with all the demand.
Read the article at CNN Business.
