MoneyDon't Waste Your Money


DWYM: Why is the market for used cars so strong?

Posted at 10:37 AM, Aug 11, 2021
and last updated 2021-08-11 11:45:12-04

Thinking of trading in your old car, truck, or SUV?

You might want to do it in the next few weeks!

Used cars prices have been crazy all year.

But have you seen what dealers are offering to buy your car?

Some people are now getting more than they originally paid!

Kyle peavley just bought this cute little BMW.

He did it with all the money he made selling his 2019 Tesla.

"When I went online, and got a quote for my trade-in, I was kinda shocked," Peavley said. "I was like, they are going to pay me what I bought it for new?"

Kyle had driven his white Tesla for almost 2 years, racking up about 15,000 miles.

But a dealer -- desperate for cars to sell right now -- agreed to pay him the original selling price.

"So it was like $39,999, what I bought it for, and I sold it for $39,997."

Yep, he drove a Tesla for almost two years for $2.

This is not the case with all vehicles. It has to be something in high demand.

But if you have, say, a 2-year-old pickup truck, you might be amazed at what dealers will offer you for it.

"I had some friends of mine who were paid more than they purchased it for, and they made a little money for it," Peavley said.

Some one- and two-year-old used vehicles now cost more than the sticker price on that vehicle brand new, according to

Among those cars include:

  • Kia Telluride SUV: $3,000 more for a used version.
  • GMC Sierra pickup: $3,000 more used.
  • Toyota Tacoma pickup: $3,000 more used.

If you have one to trade in, Peavley says consider doing it now.

"My grandmother always told me, when you drive it off the lot it loses half its value," he said. "That's just not true!"

This upside-down car market is not expected to last: dealers now report more new cars are coming in. And they expect used prices to drop this fall.

So be careful so you don't waste your money.