The madness of used vehicle prices is behind us, according to Auto Guide columnist Antoine Joubert.
In a changing economic context, the used vehicle market is experiencing a historic drop in prices.
According to the Manheim firm’s used car value index, the average price fell 23% in one year. It’s currently $18,000 in the United States.
Mr. Joubert is not surprised to see a drop in automobile prices.
The market “was artificially inflated,” according to the columnist.
“There are many used vehicle dealers and car dealerships who are paying the price today by owning vehicles for which we paid much more than their value and [qui sont] very difficult to sell,” he mentioned on the LCN show.
He adds that this drop in prices has particularly impacted the electric car market.
“We have seen some somewhat questionable games,” said Mr. Joubert, on LCN.
He accuses automakers of “playing yo-yo with prices.”
“We are suffering a depreciation which makes absolutely no sense,” launched the columnist.
As a reminder, the Quebec government will reduce credits for electric vehicles starting next year.
“Manufacturers have no choice but to adjust,” he adds.
Mr. Joubert believes that the price of used cars will fall further.
“Cars cost more and we have plenty of them,” he concludes.
