Used cars are more valuable due to the pandemic

Your leased or used car’s value is red-hot right now as car dealerships are paying more for your mileage because manufacturers are still playing catchup.

Jeff Nielsen does his homework when it comes to big purchases. Nielsen leased a Chevy Colorado a little over a year ago when he realized he might want a Suburban instead.

“With family coming down, it’s easier to have one vehicle traveling around to the beaches than two or three,” Nielsen said.

While researching his truck’s value, Nielsen learned that dealers want more used cars because of COVID-19 shutdowns.

And that’s when his wheels started turning.

“I reached out to a couple of different dealerships and they were more than happy to talk to me,” Nielsen said.

Not only did he get out of his lease 21 months early penalty-free, but they put $900 toward Nielsen’s next car.

“Your car is like a piece of stock,” said Naples Nissan managing partner Aaron Walker. “Right now the stock is higher.”

Walker says the values listed on Kelley Blue Book and the National Automobile Dealers Association are noticeably higher.

“Maybe a car was worth 10 grand a year ago; now it’s worth 13,” Walker said.

And he says the quality of used vehicles is better, too, because they’re local trade-ins, not turnover from rental car companies.

“The rental companies couldn’t buy new cars either, so they’ve kept their fleet longer,” Walker said.

But these deals won’t last forever; Walker suspect prices will level out by 2021.