Which online car buying service gives you the best offer? New data says Carmax
Selling a car in 2022 is no longer as easy as it used to be. With the lasting effects of COVID-19 on manufacturing, low inventory is common in the automotive industry. In addition, the global shortage of semiconductors is throwing a new key into the production of new vehicles. In some cases, new cars are not even available from local dealers.
Cue the rise in demand for used cars, and the subsequent rise in the prices of these vehicles. In the past year, the prices of used vehicles have soared. Prices are up 25% year after year in 2022 and 60% higher than before the pandemic. In May the average price for a used car was $28,312. Today, consumers are unlikely to be able to find a used car under $10,000.
Demand for used cars has remained sky-high, encouraging many people to consider selling their cars. The need for a vehicle for commuting has been greatly reduced by the number of people working remotely or working from home. Others are considering selling their vehicles due to record high gas prices – the Average US Driver Expenses 2.57% of their monthly income on their gas tank.
However, the opportunity to make a profit on your used vehicle is a major reason Americans have searched where to get the best deals on their cars. In the past year, Google searches for “where can I sell my car for the most money” have increased by more than 300%.
To make it even easier, most used car purchases are made online. In fact, 66% of people buy their used car online. Online dealers and online car buying services such as Carvana, Vroom and Carmax have made the process much more accessible for people who want to both buy and sell a used vehicle. So where can consumers expect the best deals on their used vehicles?
A new study from FinanceBuzz found that: Carmax offers the highest prices for used carss against its competitors. They compared offers from the three car buying services for different makes, models and years of 100 vehicles.
Carmax’s average bid was nearly $1,000 more than Vroom’s or Carvana’s bid. In 63% of the vehicles they analyzed, Carmax made the highest bid for each vehicle. Carmax’s average bid price was nearly $14,000. In contrast, Vroom’s offers had the lowest average price of the three dealers. Vroom’s average bid price came in at $12,775.
Their analysis also found that the age, vehicle type and mileage of the vehicle all affect listing prices. In particular, Carmax delivered the highest average offer price for all ages, mileages and types of vehicles. The biggest difference in vehicle types and offerings across the platforms is within the SUV category – Carmax offers more than $1,500 for an SUV on average than Carvana and Vroom.
For those looking to buy a more affordable used car, the mileage is likely to be much higher. Cars with 50,000-100,000 miles returned an average bid of $16,810. Vehicles with mileage of 150,000 or more received a combined average bid of $2,957.
As the used car market continues to rise, owners looking to sell can capitalize on this trend, potentially even making a net profit. A tip for those looking to sell: Always shop online before agreeing to sell locally.