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What Should You Know About Car Shipping Rates?

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If you are planning to ship a car, the first question on your mind is probably, “How much will it cost?” Unlike other products and services, there is not a single fixed rate for auto shipment. There are actually a number of different factors that come into play when determining how a car’s shipping price is calculated. Auto-shipping is also a supply/demand business, which means rates will fluctuate based on demand. Let’s delve a little deeper into how shipping rates are calculated and what factors affect shipping prices.

Factors That Determine Shipping Rates

1. Distance: As one might expect, the farther you are shipping a car, the more it will cost you. Longer trips usually cost less per mile, but since there are more miles to be traveled you can expect this to be reflected in the price.

2. Vehicle Size and Type: Another important factor that will determine shipping costs is the make, model, and size of the vehicle being shipped. Since auto carriers have weight restrictions, larger and heavier vehicles will cost more to ship than smaller vehicles.

3. Vehicle Condition: If your vehicle is inoperable, you can expect to pay a higher price to ship it. That’s because inoperable vehicles require special equipment to load and unload the vehicle on and off the carrier. There is usually an additional charge of about $200 for vehicles that are not in working condition.

4. Location of Shipment: Another factor that affects shipping rates is the location of pickup and/or delivery. Heavily traveled routes such as those between major cities will cost less because there are likely to be other vehicles for carriers to pick up and drop off along the way. On the other hand, if you are delivering a vehicle to a rural area that is not heavily traveled, you can expect to pay a premium price.

5. Type of Carrier: Most shipping companies will give you the option of choosing between open and enclosed transport. Enclosed transport is more expensive because the carrier can hold fewer vehicles.

6. Time of Year: Given that this is a supply and demand industry, truckers will set prices based on demand. During certain times of the year, car shipping is in higher demand and this can sometimes affect shipping rates in those areas.

7. Fuel Costs: Gas and diesel prices can also affect shipping rates. Just as with the airline industry, if fuel prices go up so do the prices.

8. Expedited/ Rush Service: If you need your car delivered in a hurry, there are expedited shipping options that will increase the rate. On the other hand, if you are more flexible with your delivery date, you can save a lot of money.

Average Rates to Ship a Car

The typical car shipping cost can range anywhere from $500 to $1500. On average, the cost is about $2.92 per mile for distances under 200 miles and $0.78 per mile for distances over 1,000 miles. These numbers can give you a rough estimate of shipping costs, but the only way to get an accurate quote is by requesting a personalized estimate.

Should I Ship My Car or Sell it and Buy a New One?

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When you are moving across the country, you may be wondering how to get your car there without having to drive it. Better yet, you may be wondering if it’s more convenient and cost-effective just to sell it and buy a new one. While there are pros and cons to both options, it ultimately comes down to a few important factors. Here we will take a closer look at your options as well as specific factors that may determine which decision is right for you.

Option #1: Shipping Your Car

Moving across the country is stressful enough, and thinking about the logistics of getting your car there can make things all the more overwhelming. The good news is that auto shipping is a convenient, simple, and safe option for transporting your car thousands of miles. If you choose to ship your car, you can easily schedule the pickup and delivery of your car and you can rest easy knowing that your car will be safely delivered to your new home. That said, you may be wondering if it’s worth the cost to ship your car. In most cases, shipping a car is significantly cheaper than buying a new one. There are several factors that will determine the exact price but the average cost to ship a sedan across the country is around $1200-$1500. When you consider the cost of purchasing a new car, it’s easy to see that shipping is far more cost-effective.

Option #2: Sell Your Car and Buy a New One

Your second option is to avoid the hassle of shipping your car altogether and selling it instead. Then, you can buy a new car when you arrive at your new location. In some circumstances, this might make sense if you were planning to upgrade your car anyway. This might also be a feasible option if you are in need of cash right away to help with moving expenses. Keep in mind, however, that you will need to figure out transportation until you purchase a new car.

Things to Consider:

Personal Plans for the Car: Is your current car older and in need of several repairs? If so, you might feel like the time is right to simply sell that car and purchase a new one. After all, it won’t make much sense to pay shipping costs for a car that you plan to turn around and sell in a couple of months anyway.

Convenience: There is no doubt that shipping a car is an easy and convenient way to transport your car across the country. Once you do your research and find a reputable shipping company, you simply call to schedule your pickup and delivery. You can even arrange to have your car picked up and delivered right to your door. This can be a much more convenient option than fussing with finding a buyer.

Cost: There is no doubt that shipping will be more cost-effective than selling your car and buying a new one. Given that the average cost to ship a car across the country is around $1500, you are almost certainly going to pay much more to buy a new one.

Current Availability: Given the current market conditions for new and used cars, you might have a very hard time finding a car. Inventory for both new and used cars is at an all-time low and prices are on the rise as a result. For this reason, it appears that shipping your car will be your best option.

The bottom line is that shipping or selling your car really depends on whether or not you have plans to upgrade your vehicle. Despite the cost to ship your car, you will still be saving money and you can make the process easier and more convenient by shipping your car. Unless your car is nearing the end of its life or you simply want to upgrade your vehicle, it almost always makes more sense to ship your car.

Should I Contact More Than One Company When Shipping a Car?

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Transporting your car from one part of the country to another is no small feat. That’s where shipping companies come in handy. They handle all of the logistics of getting your car from Point A to Point B so you can focus on other things, perhaps like moving. That said, your car is one of your most prized possessions so you don’t want to hand it over to just anyone. You want to be sure you are working with an auto shipping company that is reputable, trusted, and reliable. Furthermore, you want to be sure you are getting a fair price for the shipment. For all of these reasons, it is important to do your research and contact more than one shipping company before choosing one for the job. Here are just a few things to consider when looking for an auto transport company.

Reviews

First and foremost you want to check out various companies’ reviews before settling on one. You can browse reviews on the internet, check safety reports through the U.S. Department of Transportation, talk with the Better Business Bureau, and finally, speak with the company themselves and ask for references. The more you research reviews, the more likely you will find yourself worthing with a reputable shipping company.

Rates

As you would with many other services, it is important to shop around and compare prices. Call multiple car shipping companies and request a personalized quote based on your specific vehicle and needs. You also want to make sure this quote includes everything, so you aren’t surprised by unexpected fees and charges.

Compare Insurance

Auto transport companies are required by law to have up-to-date insurance. However, you should never assume they do. Ask for proof and check the details regarding the policy. Compare coverage between companies and find out how each one handles damage claims.

Check for Proper Licensing

While most auto shipping companies are who they say they are, there are unfortunately some scammers out there. Therefore, you want to ask around and make sure each company you speak with can provide you with U.S. Department of Transportation number (DOT) as well as a Federal Motor Carrier Safety Administration (FMCSA) number. It is required by law that auto shippers be properly licensed, and these numbers can be used to check for verification and safety history.

Compare Services

Different car shipping companies might have different services available for shipping. For instance, some companies offer the option to choose between open and enclosed transport. Others may give you the option to choose between door-to-door pickup and delivery versus terminal-to-terminal. Be sure to speak with different companies to find the one that provides the exact services you need.

Tips for Selling Your Car Online for the Best Price

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With the nation experiencing a serious vehicle shortage, used cars are in higher demand than ever before. If you are looking to sell your car, now might be the best time to do it. While you have the option of taking your car to a dealer, there’s a good chance they will offer you less money than a private buyer. After all, they are going to turn around and sell it so they are looking to maximize their profits. Listing your car online might be a better option, and one that brings more money to the table. Thanks to the ease and convenience of technology, sellers can even reach a broader audience by selling their car online. Here are a few helpful tips to ensure you get the best price when you sell your car online.

1. Choose Your Platform

There are lots of different sites and platforms where you can list your car online and each has its own pros and cons. Therefore, consider the car you are selling to decide which one is right for you. For example, if you are selling an old commuter car with high mileage, you could probably fare well using Facebook. The listing is free and there are no fees to list your car. You can also try Craigslist for free, but do be cautious of scammers. There are other listing platforms such as Kelley Blue Book and Autotrader that can usually bring more traffic, higher prices, and they are better at filtering out scammers. However, these do have fees associated with them. Higher value cars and trucks might bring more traffic and money on a site like Bring a Trailer, Hemmings, or eBay.

2. Know your Car’s Value

It is very important that you know what your car is worth so you can price it accordingly. One of the easiest ways to find your car’s value is by checking Kelley Blue Book. This is a great tool for finding out how much the car is worth on the private market so you can set a floor on your asking price. It’s important that you do a little research to find out what cars with similar mileage and condition are listed for in your area. Pricing a car too high can result in being ignored by buyers but pricing it too low can mean making less money on the deal.

3. Clean Your Car

Your car is going to appeal to more buyers if it is cleaned up. Just as you clean yourself up to make a good first impression, you want to do the same with your car. Wash the outside and don’t forget to shine the tires. You also want to vacuum and wipe down the interior.

4. Take Lots of Pictures

When selling a car online, pictures are worth a thousand words. Buyers want to see your car from every angle, inside and out. Make sure the pictures are taken in proper lighting and they are clear. Be sure to include multiple photos from every angle. Be sure to include plenty of pictures of the engine and undercarriage as well. Many online buyers won’t consider a car unless there are loads of photos to accompany the listing.

5. Include a Very Detailed Description

A car is a big purchase so people want to know exactly what they are getting. When it comes to selling a car online, information is valuable and the more you can offer, the better. People are going to have lots of questions regarding your car so take the time to research the make and model of your car and include as many details as possible. Be sure to include the mileage, the type of engine, what kind of gas mileage it gets, its safety features, all special features, and any other specifications regarding the vehicle. You should also include the VIN number so buyers can easily look up the vehicle’s history report. This will give buyers’ peace of mind about the vehicle.

6. Be Willing to Negotiate

When pricing your car, be mindful that most people are going to try and negotiate. Therefore, leave a little wiggle room for negotiating. Most buyers will also feel better about making the purchase if they feel like they are getting a good deal.

7. Offer Multiple Payment Options

If you plan to sell your vehicle online, electronic payment apps like Venmo, Zelle, and PayPal are increasingly common and make the transaction easy and convenient. Easy payment options can help finalize the sale before the buyer has a chance to reconsider.

The Comprehensive Guide to Gifting Vehicles

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Maybe you have a child that is graduating from school or a relative in need of a vehicle. It might even be that you know someone who is struggling financially and you would like to gift them a car. Whatever the reason, there may come a time when you would like to gift a car to someone else. Given that the process of gifting a vehicle is much different than buying one, it’s important to know the process of how it works and also understand the tax implications of giving a car to someone else.

Make Sure the Car is Paid For

You will not be able to gift a car or transfer a title unless you own the car. Therefore, if you have an outstanding balance on your car loan, you must pay it off completely before you can give the car as a gift. Be sure you obtain a copy of this final payment from your bank or dealer’s lending department to confirm the full payment.

Consider the Recipient’s Financial Situation

Even though you are gifting a car to someone else for no financial gain, you still need to go over the terms of the arrangement with the recipient. Make sure they understand that once you give them the car, they will be responsible for other costs such as gas, insurance, and maintenance. You also want to work out who will be paying the taxes and other fees associated with transferring the title. If the recipient is unable to afford the expenses associated with owning the car, you may want to reconsider your decision.

Be Prepared to Pay the Gift Tax

While there may be no sales tax, there may be a federal gift tax involved with gifting your vehicle. The requirements differ every year, but typically a gift tax is applicable when the fair market value of the vehicle exceeds $15,000 for a single person or $30,000 for a married couple. The gift tax can be anywhere between 18-40%.

Write Up a Bill of Sale

Without a formal bill of sale, there is no proof that someone else owns the car and you may still be liable. You can avoid any misunderstandings by writing up a bill of sale that includes the following information:

  • Make and model of the vehicle
  • Purchase price of the vehicle
  • VIN
  • Odometer reading
  • Your signature and the signature of the giftee

Transfer the Vehicle Title

You must transfer the vehicle title to officially release ownership of the vehicle. The easiest way to transfer the title is to go to your local DMV, fill out the necessary paperwork, and pay a transfer fee. At this time you will list the price of the car as gift. Since vehicle transfer laws and fees vary by state, you may need to familiarize yourself with this information before gifting your vehicle.

Make Sure the New Owner is Insured to Drive the Car

Now that you are ready to hand the keys over, you need to make sure the giftee is properly insured to drive the car. They will not be able to legally drive the car without insurance. If the giftee already has car insurance, they simply need to contact their insurance company to add this vehicle to their existing policy. If they do not have insurance, they will need to sign up for a new policy.

Is Additional Car Shipping Insurance Necessary?

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If you are moving across the country, purchasing a car from another state, or attending a car show, sometimes driving is not an option. Therefore, you must rely on auto shipping to safely get your car where it needs to go. For most people, their car is one of their most valuable assets, so it only makes sense that they would want to protect it. Although damage during auto shipping is unlikely, there is still the possibility that something could happen while your vehicle is in transit. Things like weather, falling branches, and road debris always pose a slight risk. This is why it is important to inquire about insurance when shipping your car. Shipping insurance can help provide peace of mind during the shipment process. If you are preparing to ship your car in the near future, here are some important things to consider regarding car shipping insurance.

What Insurance is Provided by Shipping Companies?

Auto transport companies are required to provide basic liability coverage. This policy typically  covers damage to your vehicle that occurs during loading, transport, or unloading. Everything else, including any damage that is a result of your car’s condition prior to shipment (e.g, leaking oil, loose parts, etc.) is your responsibility. While basic liability insurance is required, the terms and amount of the coverage will depend on the particular auto transport company and the minimum requirements for that state. That is why it is important to inquire about the details of the insurance coverage prior to booking your shipment.

How Much Coverage is Enough?

Again, auto shipping companies are required to have coverage, but the exact amount of the policy varies by company. Therefore, you need to inquire about the specific policy to decide whether or not it is adequate for your vehicle. You may come to find that the coverage does not meet your expectations in covering the true value of your car. This can be especially true if you are shipping a luxury or antique car. If the company does not offer the coverage you need, you may need to choose a different shipping company or look into adding additional coverage on your own. In addition to checking with your car shipping company, you should also contact your own auto insurance provider. Depending on your policy, your car may be covered during auto transport.

Although auto transporters are legally responsible for carrying liability insurance per the United States Department of Transportation, there are unfortunately frauds out there. Always ask for proof of insurance as well as a detailed explanation of the policy coverage prior to shipping your car. At this point, it is up to you to determine whether or not additional coverage will be necessary.

Car Show Tips: Preparation and Displaying

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If you have a classic car, you may be eager to show it off! After all, you have worked hard to keep your car in mint condition so it only makes sense that you would want to share its beauty with other car enthusiasts. Whether it’s your first time entering a car show or you have done so several times, it’s important to remember that there are certain tips and tricks to ensure your car looks its best. If you’re hoping to win a trophy or you simply want to impress passers-by, these car presentation tips will improve your entire car show experience.

Preparing Your Car

Wash Your Car

If you want your car to stand out, it needs to be shiny and clean as a whistle! Car fanatics know that if you plan to enter your car in a show, it should be in pristine condition. This begins by giving your car a good and thorough cleaning. Be sure to wash every inch of your car’s exterior, including the engine and the undercarriage. You also want to be sure and wash your car by hand to ensure that you don’t miss a single spot. After all, car shows are all about the details. Be sure to use appropriate automotive products and avoid harsh cleaners that can damage your paint job. You also want to begin with the wheels, and then work your way from the roof down. Finally, always wash your car in the shade so it doesn’t dry too quickly in the sun and leave streaks.

Dry Your Car

Preparing your classic car for a show isn’t the same as washing your everyday vehicle. You can’t just take it for a spin and let it air dry. When you are prepping a car for a show, you must hand dry the car yourself using a microfiber towel. This will prevent streaks and water marks from showing up on your car. It also makes it easier to catch any dirt spots that may have been overlooked. You can remove any remaining spots with an abrasive polish. This is a great trick for saps and other stains.

Polish Your Car

Now it’s time to give your car that pristine shine. Once your car is cleaned and dried, you can polish away any spots where grease, dirt, scrapes, or scratches are still visible. Once you have polished your car, you can apply a glaze that will seal and lock in the shine. Glazes are perfect for filling in small minor scratches and imperfections on the surface of your car to minimize their appearance. Finally, spread a thin layer of wax on the vehicle to give it a nice shine.

Detail the Interior

You want to make sure the interior of your car looks as impressive as the exterior. Start by vacuuming the floors and in between the seats. Take a damp cloth and wipe the hinges and door jambs to remove grease. Next you want to shampoo the carpets using an automotive carpet cleaner and use a mild soap to wipe down hard surfaces like the dashboard. Wipe down the windows with a glass cleaner. Finally, use a conditioner for leather seats. You also want to use a conditioner on your tires to give them a good shine. Shining your tires can make your car look brand new. Be mindful of the trunk as well, and don’t forget to clean it out when you are detailing the interior.

Displaying Your Car

Bring a Canopy Tent

Parking in the shade is ideal, but it’s not always possible. That’s why it’s extremely helpful to bring a canopy tent. This allows you to stay in the shade no matter where your car is parked. Not only do canopy tents provide much needed shade for you and your car, but more people will come look at your car because it is in the shade. It also helps protect your car from sap or pollen that can fall from nearby trees.

Open the Hood and Trunk

When you are displaying a car at a show, you have to show every part of your car, including what’s under the hood. After all, the engine is the heart and soul of the vehicle. If you don’t open the hood and trunk, judges might assume you have something to hide. Even if you don’t have the biggest engine, people still like to see what’s going on underneath the hood.

Open the Windows

In addition to opening the hood and trunk, you also want to open all of the windows. This makes it easy for attendees and judges to peek inside your vehicle. Considering how much work you put into detailing the interior, you certainly want to make sure and show it off.

Make a Modifications Poster

People can look at your car and they may assume any number of things but they won’t know the exact specs and details unless you tell them. Invest in designing a framed poster that includes all of your car’s modifications. That way, people can read all about your car instead of making guesses. This can also be very helpful for judges who might stop by when you aren’t available to answer questions. This provides them with information about your car and a list of all the mods you have made.

Display Original Documents if Possible

Not everyone has access to the original documents for their car, especially for older cars. That’s because paper is hard to maintain over the course of many years. That said, if you do happen to have any original documents including the original paper advertisement, owner’s manual, or stickers with specs, be sure to display these along with your car during the show. 

Place Mirrors Underneath Your Car

It may sound strange but most people will not take the time to get down on their hands and knees to peek under your car. However, that doesn’t mean they wouldn’t be interested in seeing the undercarriage. By placing a few mirrors underneath your car, it makes it easy for people to see the suspension and other components they may have otherwise missed. This helps to create that extra wow factor for judges.

Get a Custom License Plate

This is one detail that is easy to overlook but can really make your car stand out. License plates are a big part of a car’s identity and this is a great way to showcase a little personality and give your car an easy way to be identified. Getting a custom license plate can really add to the ambiance of your classic car.

Towing an Electric Car- What You Need to Know

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If you own an electric vehicle, you may be wondering if it can be towed. Whether you just want to be prepared in case your car breaks down or you are looking for a way to move it a long-distance, it’s important to know the ins and outs of towing your electric car. While it is certainly possible to tow electric cars, they are not towed like a traditional combustion engine. Electric cars are equipped with onboard electronics and motors that are installed to turn the wheels, and this can make the towing process a bit more complicated. It is best that you are aware of exactly how to tow your electric vehicle.

Why Might You Need to Tow You Electric Vehicle

While EV’s are certainly reliable cars, they are not immune to the occasional malfunction. As with any car, things can and do go wrong from time to time so you need to be prepared for the unexpected. For example, you may encounter a flat tire, a dead battery, brake issues, or even a factory defect. You may also find yourself in need of towing if you plan to move to another state.

Start with a Charge

If the reason you are having your car towed is because the battery ran out, it is best to try and charge it rather than tow it. Instead of towing it to a charging station, check with the towing company to see if they have a charging truck that can be delivered to your vehicle. Charging trucks can be a good alternative to towing if you are dealing with a dead battery.

Towing Your Electric Car

Any car, whether it be gas-powered or electric, can suffer major damage if it is towed incorrectly. Electric vehicles are equipped with computers on the tires, batteries, and sensors, so a number of things can go wrong if it is not towed properly. Unlike gas-powered vehicles, most EV’s do not have a neutral gear, so the wheel movement is generating power to a battery that isn’t turned on. In order to fully eliminate wheel movement, it is recommended that you always tow your EV on a flatbed truck in order to avoid potentially catastrophic damage to your vehicle. In most cases, all four wheels should be off the ground and not in movement unless the car is being driven. When loading your EV onto a flatbed, be sure to check the specific vehicle’s manual to locate where the tow chains can be safely and securely attached to your vehicle.

Safely Transport Your Electric Car

Purchasing an electric vehicle is a big financial investment, so you want to learn about proper care and maintenance. This includes knowing the basics about towing your EV. If you are moving or transporting your EV a long distance, it is always recommended that you work with a professional auto shipping company to safely transport your electric vehicle. This will ensure you protect your vehicle and your investment.

How Car Home Delivery Works When You Buy a Car Online

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If you are in the market for a new car, look no further than your laptop. These days, thanks to technology, consumers can shop dealers all over the country to find the perfect car. They can even make the purchase right from the comfort of their own home. Forget about spending your entire weekend strolling around car lots. Online car shopping has changed the way consumers shop for cars and the process has never been easier. Once you have found that perfect car, you can even arrange for home delivery. Avoid the hassle of spending hours at a dealership and forget about driving across the country to pick up your new car. Home delivery makes buying a car online easy, convenient, and hassle free.

Here’s How it Works

The last thing you want is to put additional miles and wear and tear on your brand new car. Home delivery is the best way to get your new vehicle, without compromising the quality of the car.

Discuss it with the dealer: Before purchasing your new vehicle, be sure to let the dealer know that you are interested in home delivery. Some dealers will offer this service as an option when purchasing the vehicle, while others might not be willing to do so. Some dealers might have a policy where you have to arrange for your own delivery. Either way, you want to discuss this service up front with your dealer so you can negotiate the best price for the vehicle, including transport.

Fill out the necessary paperwork: If the dealership offers home delivery services, the process is pretty straightforward. They will ask you to sign all of the sales documents and verify that the car is indeed the make and model that you chose. At this time you should also ask for photographs of the vehicle as well as a photograph of the odometer. You want to be sure to have these photos so you can properly document the car’s condition prior to shipment. The sales rep should also arrange for an inspection of the vehicle before you conclude the sale.

Research car shipping companies: If the dealership will not provide home delivery services, you will need to make your own shipping arrangements. Start by researching car shipping companies and make sure to verify proper licensing, registration, and insurance. You also want to check reviews and ask for a quote before booking. Once you have chosen a reputable car shipping company, you will arrange for them to pick up your new vehicle at the dealership. (the sales rep should still take care of photos and inspection.)

Choose your transport option: When booking shipping services, you will have the option to choose between open and enclosed transport. Though it costs a bit more, enclosed transport offers the most protection for your vehicle during shipment. Covered transport is recommended for antique, luxury, or expensive cars.

The Bill of Lading: The Bill of Lading is an important document that acts as a contract between the shipping company and the customer. As soon as you come to an agreement on the delivery time, this information will be inserted into the Bill of Lading and the shipping company will arrange to pick up your car from the dealership. Upon pickup, the sales representative will also provide documentation and photographs of the vehicle’s condition. You will electronically sign the Bill of Lading, confirming the condition of the vehicle. Once the vehicle is delivered to you, you will inspect it again and sign the Bill of Lading once more to finalize shipment.

Your car is delivered to you: Confirm all shipping details and ensure all documents are signed. You also want to arrange to have someone available when the car is delivered, so you can sign the Bill of Lading. Once everything is arranged, your delivery is scheduled and your vehicle will be on its way. You should receive notifications about estimated delivery times as your vehicle is in transit.

 

The Surge in Used Car Prices Explained

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If you are in the market for a used vehicle, you have probably experienced a bit of sticker shock. That’s because used car prices have skyrocketed in recent months, in some cases even surpassing the vehicle’s original MSRP. This has undoubtedly turned vehicles into an appreciating asset, something that has previously been unheard of. These record high prices have left consumers feeling annoyed, frustrated, and curious about what is going on. The answer is pretty simple- supply and demand. This basic economic principle, combined with the coronavirus pandemic, has led to record high used car prices. Let’s take a closer look at how we ended up here and what factors have contributed to this rise in price.

The Impact of the Pandemic

There is no doubt that the COVID-19 pandemic has adversely affected a number of industries, and the automotive industry is no exception. In early 2020, millions of workers were forced to work from home, which translated to a delay in new car purchases. Fewer new car purchases means consumers are holding on to their old cars and this leads to fewer used cars available for sale. In short, without a healthy market for new car sales, the used car supply dries up and the cost increases due to lack of inventory. Simultaneously, record levels of unemployment and financial anxiety have encouraged more people to buy used cars instead of new ones, which has led to an even greater demand. Simply put, more and more people are lining up to buy used cars but the supply is low and this drives the prices up.

The Rental Car Crisis

Another reason used car prices have been hit so hard is directly related to rental car companies. Rental car companies were at a near halt last year as a result of the pandemic so many of them sold off most of their cars in order to stay afloat. Now, with the rebound in travel, rental car companies are facing a shortage of cars to rent as demand has soared. They are scrambling to purchase used cars, and are even willing to pay a premium price, to restock their inventory.,

Delayed Purchases

Another factor that is playing into the recent surge in demand for used cars is the fact that many buyers are now starting to make purchases that they put off last year as a result of financial uncertainty during the crisis. Since there are fewer new cars on the market, these buyers are now forced to look into purchasing a used car. These same consumers had planned to spend more to buy a new car, so their budget is now higher for a used car.

Shipping Crisis

Finally, we are facing an unprecedented shipping crisis, with barges unable to unload at their ports. This has led to a devastating shortage of microchips, which are necessary for the electrical components in new cars. As a result, new car manufacturers are forced to slow production, which has left consumers with no choice but to purchase used cars. Again, there is a high demand for used cars and a shortage of supply, which has driven used cars prices to an all-time high.