MEMPHIS, Tenn. — If you're thinking about selling your car, this may be a good time if you're hoping to make a profit.
Inflation has been an ongoing issue throughout the pandemic. There's not a lot of inventory and the supply chain issues have led to a chip shortage, slowing down production.
That's played a big part in the changes we've seen in the automotive industry and why the prices of used cars have been rising.
“You can definitely get more money for it now,” Madison Automotive owner David Jayne said.
In fact, he added, some used cars can cost more than a lot of new cars. If you're looking to sell, Jayne suggests you consider one thing first.
“The easiest thing to do is to take it to a dealership," Jayne said. "I keep hearing commercials saying, ‘Take it to this dealer and we’ll offer you $2,000 more,' so they’re paying so much for them that it’s to me, hardly even worth the effort of trying to sell them on your own.'"
If your car has racked up the miles or needs expensive repairs, Jayne said it is important to do what makes sense for you.
“Sometimes it’s not economical to fix it and then sell it," Jayne said. "You just have to do the math and weigh the options."
You may be able to sell your used car for more money, but when you need to replace it, your next car will also likely cost more.
“It’s kind of like the housing market. Everything is way up, so great, you can make a little extra money on selling your vehicle," Jayne said. "You still have to go purchase one, or you’re going to have to pay a premium for the one you purchase, as well."
If you aren't in a rush to buy a new car, Jayne said you may be able to pay the normal price if you order it and are willing to wait 4-6 months. Otherwise, you could be paying up to an extra $15,000.