EZ Key Programming's CEO, Terry Tonsing, Talks The State of Used Car Prices in 2023

ST. LOUIS - May 4, 2023 - PRLog -- The automotive industry has continued to experience significant changes over the past year, according to Terry Tonsing, particularly in the used car market. In 2023, we see current reports showing that used car values have continued to rise.

According to the latest data, used car values have increased by 8.6% percent in the first quarter of 2023. This trend is likely due to ongoing supply chain disruptions and a shortage of new car inventory. Consumers shopping for used cars may experience sticker shock, particularly for popular models that historically hold their value well. Some buyers may need to consider paying above asking prices or accepting longer loan terms in order to secure a used car.

Despite these challenges, there are still opportunities for savvy buyers. Looking for less popular models or considering private sellers and smaller dealerships may offer better pricing than larger dealerships or online platforms according to Terry Tonsing.

Prices will normalize, Terry Tonsing says, because inventories have begun to normalize. Car dealers measure their supply of used cars with a metric they call days of inventory – how long it would take to sell out of cars at today's sales rate if they couldn't acquire more.  In the first quarter of 2023 the average dealership had 56 days' supply according to Terry Tonsign. That's nearly back to pre-pandemic numbers.

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