What is a "hot" used car market?
A "hot" used car market is one where the demand for used cars is high, driving prices up. Demand for used cars can increase due to a variety of reasons, such as an increase in buyers, a shortage of vehicles in general, sharp price increases for new cars, and many other economic factors.
Selling your car in a hot used car market
The potential drawback to selling in a hot market is finding a replacement vehicle. The same market that drives the price up on your old vehicle can make it hard to find a replacement. A strong used car market often means the new car market suffers from the decreased supply. Selling your car at the right moment can be a great way to get some extra money. Learn more about the best time to sell your car.
The 2020-2021 used car boom
In 2020-2021, nearly all of the factors that drive a strong used car market came together at once to create one of the strongest used car markets in history. A semiconductor shortage made it impossible for manufacturers to meet the demand for new cars (which rely heavily on computer chips). The supply shortage for new cars drove more businesses and car rental agencies to buy up used cars, too, making used vehicles scarcer as well.