Lower Car Prices in Utah: This is Good and Bad

Used Car Prices Coming Down in Utah 

There is good news when it comes to used cars in Utah, however, with all good news there seems to be some bad news that comes with it. Used car prices have been high since the pandemic and have started to come down. 

This is good news for consumers looking to buy a used car. Edmunds reports that the used car market is beginning to stabilize. Soon after the pandemic, car dealers were desperate for these vehicles and were giving a high value for trade-ins. Now it is beginning to even out. 

Upside Down in Car Loans 

With the decline in demand for new and used cars, some who purchased a vehicle in the last few years are finding they owe more than it is currently worth. According to Fox Business, the number of people in this predicament is at an all-time high. 

Not being able to get the trade-in value leaves those who are upside down with few options and slows down the market. Vehicles that are one to two years old are the most susceptible to losing their value quickly. 

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The other problem according to Edmunds, is the number of used vehicle inventory is still low. This will make it hard for those looking for an affordable vehicle option to find what they need.  

What Does it Look Like in the Future? 

Edmonds says it will be hard to predict what the rest of 2024 will look like. Car dealers are being careful about their inventories and the incentives they offer as they feel out what the rest of the year will bring.