As used-vehicle values decline, insurers are writing off more accident vehicles as total losses. Experts say the actual cash value of vehicles dropped 7.3% towards the end of last year. Insurers say they look at totals on a case-by-case basis, not as an across-the-board decision.
Up is down, black is white, and new cars cost consumers less than used cars. With dealers willing to take huge discounts to sell a car and automakers offering staggering incentives, the cost of new cars has remained low. With interest rates up on used cars and demand increasing, the cost of a used car has increased.
According to Cars.com data, consumer searches for certified used vehicles in February are up 24% year-to-date. The site also says it delivered a record number of leads to dealers that month despite declines in overall certified sales. Analysts say this trend may serve as an indicator of future sales, not just current market conditions.