GENERATIVE AI'S TAKE ON USED CAR BUYING
Published on February 25, 2025
HumbleCar.Info asked Google HOW Used Car Buying has in recent years - here is the response (2/25/2025)
Used car buying has changed significantly due to a combination of factors including the global chip shortage leading to limited new car availability, increased demand for vehicles during the pandemic, changing consumer habits, and the resulting fluctuations in supply and demand, which drastically impacted used car prices, making them more volatile than usual; essentially, when new car options were scarce, people turned to the used car market in larger numbers, driving prices up considerably. [1, 2, 3, 4]
GENERATIVE AI ON - Key reasons for the change in used car buying: [1, 3, 4]
- New car production constraints: The chip shortage limited new car production, causing a significant drop in new car inventory, which pushed more buyers towards the used car market. [1, 3, 4]
- Increased demand during the pandemic: With more people working from home and needing personal transportation, demand for cars surged, further impacting used car prices. [3, 4]
- Consumer behavior shift: People were more willing to buy slightly older used cars due to the lack of new car options, leading to higher prices for certain used car segments. [1, 3, 5]
- Government stimulus: Economic stimulus packages provided some people with extra disposable income, allowing them to purchase newer used cars. [3, 5]
- Online marketplaces: The rise of online platforms like CarGurus and Kelley Blue Book made it easier for buyers to research and compare used car prices across different dealerships and private sellers. (Click to see Compare.com Best Online Car Buying Websites) [3, 5]
Current trends in the used car market: [1, 2, 6]
- Price stabilization: As new car production starts to recover, used car prices are gradually stabilizing and even declining in some segments. [1, 2, 6]
- Increased inventory: With more new cars available, the used car market is seeing a larger selection of options. [1, 2, 6]
- Focus on newer used cars: Many buyers are still opting for newer used cars with lower mileage due to concerns about potential maintenance costs on older vehicles. [1, 5, 7]
Generative AI is experimental.
[1] https://www.fordoflafayette.com/why-used-car-prices-are-trending-down/
[2] https://www.cbtnews.com/decoding-the-decline-in-used-car-prices-and-whats-next-for-the-market/
[4] https://majorworld.com/why-are-more-people-buying-used-cars-in-2024/
[5] https://caredge.com/guides/march-2025-used-car-buying-tips
[7] https://www.kbb.com/car-advice/is-now-the-time-to-buy-sell-or-trade-in-a-used-car/