Here’s What Used Car Price Trends Mean for Shoppers in Des Moines, Iowa

If you look at prices for used cars in Des Moines, Iowa, you will notice that they have recently dropped sharply. This is great news for shoppers, but how long will it last? And what else do you need to know about the changes in used car prices at Toyota of Des Moines?

There Have Been Ups and Downs

In the last few years, prices for used cars in Des Moines, Iowa, have fluctuated wildly. First, they increased significantly due to supply chain shortages during the pandemic. By June 2021, used car prices had a 45% annual increase – the largest on record.

But now, prices have swung in the other direction. The most recent reading was in December, which included an 8.8 percent 12-month drop. This marks the largest 12-month drop in used car prices since June 2009. That price drop was because Chrysler and GM were involved in bankruptcy proceedings, and there were a lot of job losses.

Comparing Average Prices

Edmunds’ data shows that the average used car cost $29,533 in December. Compare this to April 2022’s average of $31,095. That April figure was the record high and a full $1,600 higher than the price as of December.

If you want a point of comparison, the average price of a used car today is similar to that of a new car in 2010.

Older Models Have Dropped More Than Newer Ones

As you browse used cars in Des Moines, Iowa, remember that older models will give you more savings than more recent used cars. Edmunds reports that late-model used cars are about 5% less than their peak price. But cars at least five years old have dropped 15% from their peak price.

Why Are Pre-owned Car Prices So Low?

Several factors cause the drop in prices that makes you want to browse used cars in Des Moines, Iowa. Interest rates are currently higher, which makes financing a used car more expensive. This, in turn, has limited demand.

The other big factor is an increase in the supply of new cars. Remember that this lack of new cars was the big factor that resulted in used car prices rising in the first place. Production had stalled because of the lack of computer chips and other parts. Since new cars weren’t available, even people who wanted new cars turned to used cars. That, in turn, increased the price of used cars in Des Moines, Iowa. But that is no longer a concern.

Experts also say that the price increases weren’t sustainable. They were also due to auctions where people overpaid for vehicles due to car supply problems.

Buy a Used Car at Toyota of Des Moines

Now is the perfect time to buy a used car and take advantage of the low prices. Visit Toyota of Des Moines in Grimes, IA, to choose your pre-owned car and arrange financing with ease.