Car Market Update: February 2024

Today’s car market update encompasses two things: (1) why prices rise as temperature rises every year, and (2) why MATS emphasizes being “as flexible as possible” with your car search.

1. When the weather warms every year, we see demand for vehicles rise also. As people start thinking about summer travel plans, they consider whether or not their current vehicle will work for their trip, and often that consideration prompts people to go car shopping.

Consider: What style vehicle are people most likely to find comfortable for a cross country road trip? Likely mini vans, 3rd row SUVs, and 12-15 passenger vans come to mind due to their larger seating and storage capacity. These vehicles in particular will increase in price this spring as they have for the past 20 years. Prices on sedans will also increase, albeit less than larger vehicles.

Although car prices have dropped slightly in the past 6 months – yay! – we still fully expect them to increase as they do every spring and summer.

2. We have trusted, vetted sources that we work with on a regular basis. Since the pandemic, car auctions have significantly divided into two simple categories: good or bad. A good auction is pre-disposed to the buyer, meaning the car is higher quality. Someone who buys these cars has less risk for vehicle problems down the road. A bad auctions is pre-disposed to the seller, meaning there is an increased risk that the vehicle will have issues.

The more flexible a client can be with their car search, the more likely MATS is able to buy their vehicle at a trusted, good source – a source that’s all about buyer protection. Flexibility is key because there’s less availability at good auctions, as they filter out the high risk cars. The more flexible a client can be with their parameters, the better quality vehicle they’re going to be able to purchase.

We know how to help you mitigate risk so you don’t waste your resources on a vehicle that’s more likely to have issues in the near future.