The used car market has always been an important part of the automotive industry, providing a way for people to purchase a vehicle at a more affordable price than buying new. However, the used car market in 2023 is facing some unique challenges. In this article, we will explore what is going on with the used car market in 2023, including factors that are affecting the market, such as the number of miles on a car, the number of young drivers with suspended licenses, and the increase in online marketplaces.
The Impact of Mileage on the Used Car Market
One of the biggest factors affecting the used car market in 2023 is the mileage on a car. According to The Nest, cars tend to lose value when they hit 60,000 to 70,000 miles. This means that a car that has 60,000 miles on it will be worth less than a car that has only 30,000 miles on it. This can make it more difficult for people to find a used car that is in good condition and still has a relatively high value.
The Volume of Used Cars Sold
Another factor affecting the used car market in 2023 is the volume of used cars that are being sold. Between private-party and dealership sales, nearly 40 million used cars exchange hands each year. This high volume of used cars can make it more difficult for sellers to stand out and for buyers to find the right car. Additionally, it can also put downward pressure on prices, making it harder for sellers to get a good return on their investment.
The Impact of Suspended Licenses on the Used Car Market
A third factor affecting the used car market in 2023 is the number of young drivers with suspended licenses. According to a 2019 study by the Buhl Foundation, on average, the driver’s licenses of over 57,000 18 to 24-year-olds in Pennsylvania are suspended every year. This can make it more difficult for young people to purchase a used car as they may not be able to secure financing or insurance. This can also affect the number of used cars that are available on the market as young people are less likely to be able to afford to purchase a car.
The Impact of Online Marketplaces on the Used Car Market
Online marketplaces are also affecting the used car market in 2023. Websites such as CarGurus, Autotrader, and Craigslist have made it easier for buyers to find used cars and compare prices. However, the increase in online marketplaces is also making it more difficult for car dealerships to stand out and attract customers. Additionally, private sellers may also find it harder to get a good price for their cars because of the competition on online marketplaces.
The Impact of Electric Vehicles on the Used Car Market
Electric vehicles (EVs) are also having an impact on the used car market in 2023. As more and more people are becoming aware of the environmental benefits of EVs, the demand for used electric cars is increasing. This is good news for sellers of used electric cars, as they may be able to get a higher price for their vehicles. However, it also means that buyers may have to pay more for a used electric car. Additionally, the limited supply of used electric cars on the market can make it more difficult for buyers to find the right vehicle.
The used car market in 2023 is facing some unique challenges particular to Millennials, including the impact of mileage on a car’s value, the high volume of used cars being sold, the number of young drivers with suspended licenses, and the increase in online marketplaces. While these factors can make it more difficult for both buyers and sellers, there are still opportunities for people to find a good deal on a used car. It’s important for buyers and sellers to stay informed about the market and be aware of the potential challenges they may face.