21 Jun, 2024

Car values ​​increase along with demand for used vehicles & average years on the road

NEW YORK — Consumers often hear a car loses its value once you drive it off the lot, but that may not be the case anymore.

The automotive research firm Black Book found cars are now holding on to about 10% more of their value after three years than they were during the pandemic.

“Everybody was expecting a big drop, a shatter, an explosion, values ​​to drop when supply came back. Totally didn’t happen,” Shane Sutherland, who owns the used car dealership Northport Motors, told CBS New York’s John Dias.

Sutherland told Dias his company Northport Motors grew tenfold during and shortly after the COVID pandemic, and the business is still profitable.

“We are constantly selling vehicles with 80-100,000 miles that are providing excellent value for customers,” said Sutherland.

According to data from S&P Global Mobility, the average age of a passenger vehicle is up three months compared to last year — now on the road for a record 12.5 years — and it’s common to see some people driving cars 20 years or older.

“Your used car is worth that much more at trade-in or to sell it on the open market. But it’s a bad thing for people

1 min read