Tips For Surviving Used Car Inflation

Inflation seems to be impacting transportation more than ever. Whether it’s gas prices, plane tickets, or used car pricing, it’s more expensive than ever to travel. If you’re in the market for a car, you’re forced to either bite the bullet on the higher prices or settle on a much older used vehicle. But what is driving these high prices? Is it also expensive to have your car repaired right now? What if you want to get new parts like tires and wheels for your car? 

In this article, we’ll be going through inflation’s impact on used car prices and what you can do about it. 

Average Used Car Cost vs Current Inflation Prices

According to the June 2022 Consumer Price Index Report, used car prices have risen 7.1% over the past year. All items on the index increased 9.1% over the past year, meaning inflation is currently very high. 

This has been part of the general increase in used car prices since the beginning of the COVID-19 pandemic. Much of the increase in car prices is attributed to a shortage in supply, as demand stays the same or increases. Cars are particularly difficult to manufacture right now because of a shortage in semiconductors. Modern vehicles need semiconductors for their stereo screens and other automated electronic systems within the car like the ABS.  

Consumer Reports notes that many rental car companies were selling off vehicles during the pandemic as people were unable to travel, but are now buying them back to meet the rising demand. They even suggest that the 48% average increase in used car price since the beginning of the pandemic may have helped to drive the rise in the national inflation rate. 

Where Can I Get the Best Deal on a Used Car?

While the increase in used car prices seems hopeless, the good news is that now is a better time than ever to trade in your used car. This may be one of the few times that you’ll be able to make money on selling your old car. Ideally, you would be able to trade in your car now and then buy a new car in a couple of years once the market has calmed down, but this isn’t realistic for everyone. Instead, do your research on car appraising websites like Kelley Blue Book to know the value of your vehicle and then leverage this when buying a new car. 

It’s also important to value fuel-efficiency more than ever with gas prices on the rise. Shop around on sites like TrueCar or AutoTrader to find something that’s reasonably within your budget. Other options for buying used cars:

• Dealership certified pre-owned: These used cars go through extensive inspections and repairs and are usually backed by a warranty or guarantee by the dealership. CPO used cars tend to be a little more expensive, but you’re buying peace of mind and guarantee.
• Dealership non-certified used cars: These cars have not gone through the same scrutiny as certified pre-owned, which may be reflected in their lower prices. Their prices tend to be lower, so have a trusted mechanic give it a once over before buying. 
• Used car dealership: You’ll find a range of used car dealerships under this label, from shady shysters who prey on people with bad credit to legitimate, highly reputable local dealers and national used-car chains (Carvana, for example) that buy and sell used cars. Do your homework when buying from an independent dealer; read their online reviews, check your local Better Business Bureau, and ask around for recommendations. You can get excellent deals from local used car salespeople. 
• Private sellers: Always have a mechanic look at a car before buying it from an individual, even if you know them. Consider running the VIN through CARFAX‘s vast online database, to get the accident history. It costs around $40 and is worth the peace of mind. 
• Online marketplaces: We could do a whole article on vehicle internet scams, but the bottom line is: If a deal sounds too good to be true, assume it is, and if a seller sounds even a little bit sketchy, assume they are. Sites like Craigslist are hotbeds for these scams, and you have much better options for buying and selling cars through reputable sites. ebay has gone to great lengths to battle internet vehicle scams. Read their Vehicle Purchase Protection program carefully, though, before buying through eBay Motors.  

When is it a Good Time to Buy a Used Car? 

It’s generally considered that late fall or early winter are the best times to purchase a car, as many dealers want to rotate their inventories to make room for new models. Business Insider suggests that car dealers also don’t have as much foot traffic during these months due to the harsher weather. With a lower demand, car prices are likely to be more competitive. Dealerships also may have a yearly sales goal that they want to reach. 

If you’re looking for a time of the month to buy a car, many dealerships have monthly or quarterly sales goals that the manufacturer wants them to meet. Dealers may be desperate to meet these goals and will be willing to settle on a much lower price than they normally would be. Consider buying near the end of the month or the end of the yearly quarter to take advantage of these sales. 

Does Used Car Inflation Make Wheels and Tires Cost More?

Yes, many tire and wheel manufacturers are increasing their prices to keep up with inflation. The tire and wheel industries are affected by supply chain issues across the world. The vice president of Yokohama told Consumer Carrier Journal (CCJdigital) that raw material costs for rubber went up 80% from April 2020 to April 2021. General issues with shipping, such as truck driver shortages and unrest at larger ports, have hurt the tire and industries just as much as other industries. 

CCJDigital also reported that Bridgestone raised the prices of their Firestone brand by 14% in February. Similarly, Michelin increased their prices by 16% on January 1st of 2022. Therefore, you can expect more tire manufacturers to be around 15% more expensive in 2022. It also appears to be the case for wheel manufacturers, as Rotiform, TSW, and other wheel manufacturers increased prices of their wheels by 15% in June of 2021, according to Fitment Industries. 

Read more about what affects prices in this post, where we break down tire and wheel prices.

Should I Buy Used Wheels or Tires For My Used Car?

When trading in your old car, it’s important that whatever new car you get, you’re checking the wheels and tires. If you’re buying a used car, it may not come with brand-new wheels and tires. This can potentially be dangerous, as you don’t know the history of the tires and when they’re likely to fail. We cover this topic more in our article on buying used tires. 

If you’re purchasing a car, check both the wheels and the tire treadwear to get a sense of how old they are. Having the dealer give you new wheels and tires can be part of the negotiation phase. If that’s out of the question, review Tire Agent’s easy payment plans. Buying tires and wheels online is easy, and we ship anywhere in the U.S. in as fast as 2 days.

VIEW FINANCE OPTIONS NOW

Tire Agent’s wheel and tire matching tool can help you with finding the right brands for the used car you pick out. Simply enter the make, model, year, and answer some additional questions to find the tires and wheels we have available. This can also help you get a sense of what a new set of tires and/or wheels would cost for the used car you’re thinking about purchasing.

_{Photo 19458860 / Car Lot Gunter Nezhoda | Dreamstime.com}