Is Now the Best Time to Trade In My Car?

There are many good reasons for drivers to trade in their vehicles right now. First of all, trade-in vehicles often fetch higher prices during the spring and summer. Spring income tax refunds bring many customers to auto dealerships with money in hand. Yet since many manufacturers are looking ahead to the fall's new model releases, dealerships can sometimes find it harder to stock their lots. And this combination of high demand and scarce new inventory means dealers are searching for affordable used vehicles to sell.

Anderson drivers understand that for these reasons, summer is always a good time to trade in a vehicle. Yet the summer of 2021 is an especially good time.

The worldwide economic shutdowns at the beginning of the COVID-19 pandemic led automakers to pause or roll back production on many vehicles. Modern vehicles require parts from all over the world sourced through elaborate supply chains. Thus, local pandemic response measures and travel restrictions have hit the automotive industry hard. And as many people lost their jobs and businesses lost income, consumers and fleet owners postponed intended vehicle purchases.

Yet as time went on and the economy opened up, vehicle demand far outstripped the ability of automakers to supply their dealers with suitable inventory. Consumers who had retained their jobs had plenty of leftover disposable income they had not been able to use during the pandemic. Government actions, such as lowering interest rates or providing stimulus money to households, have made access to financing easier than ever before. And fear of the virus has made commuters less willing to trust mass transit.