How 2020 Car Shoppers Benefited from Market Timing

Introduction

The automotive industry has witnessed dramatic shifts over the past few years. If you purchased a car in 2020, you may have unknowingly made one of the best financial decisions in the car-buying landscape. While prices were at an all-time low due to excess inventory, the scenario flipped dramatically by 2022, leading to record-high vehicle costs.

2018 Acura ILX

$64030

Gas

45002 mi

Good Deal  

4 (5)

2019 Audi A4 Allroad

$34000

Gas

52215 mi

Good Deal  

0 (5)

2020 Lincoln Aviator

$40843

Gas

25714 mi

Very Good Deal  

0 (5)

See More

This article explores the evolution of car prices, supply-demand dynamics, and strategies for navigating today’s challenging car market.

Buying the Dip: 2020's Golden Opportunity

During the early months of the pandemic, car dealerships struggled with excess inventory as demand plummeted. Automakers responded by offering attractive incentives, discounts, and lower financing rates, leading to some of the best deals seen in recent history.

Fast forward to 2022, and those same vehicles have surged in value. In some cases, the price increase between 2020 and 2022 has reached up to 49%. That means a car purchased at a bargain in 2020 has appreciated instead of depreciating—an extremely rare phenomenon in the auto industry.

--TOP ADVERTISEMENT HERE--

Market Trends: The Shift from Surplus to Shortage

The global supply chain crisis, semiconductor shortages, and increased consumer demand have flipped the script. Where dealerships once struggled to sell cars, they are now facing inventory shortages, pushing prices to record highs.

• In 2020: Supply exceeded demand, leading to deep discounts.
• In 2022: Demand far outweighs supply, resulting in high prices and fewer incentives.
• 

  2011 BMW 1 Series 128i

  $6176

  Gas

  158183 mi

  Fair Deal  

  0 (5)

  

  2025 BMW i4 xDrive40

  $66295

  electric

  9 mi

  Fair Deal  

  0 (5)

  

  2025 Cadillac CT4

  $48135

  Gas

  0 mi

  Good Deal  

  0 (5)

  See More
  
  

Early Buyers Reap the Rewards

Traditionally, new cars depreciate the moment they leave the lot. However, 2020 car buyers have seen unprecedented appreciation in their vehicles' values. Whether purchased new or used, many of these vehicles are now worth more than their original transaction price.

For instance, popular models such as the Kia Sorento and Nissan Rogue have seen massive price increases due to limited availability and high demand.

--FIRST CONTENT ADVERTISEMENT HERE--

What Can You Do If You're Buying a Car in 2024?

With prices remaining high, current shoppers must decide their priorities:

1. Stick to a Specific Model & Features

If you have a particular car in mind, be prepared to pay a premium or wait for inventory to normalize.

2. Be Flexible with Your Choices

If brand and model are less critical, consider less in-demand options to find a better deal.

3. Explore Leasing Options

With uncertainty in depreciation trends, leasing could be a smart move to mitigate potential future losses.

2022 Lexus ES 350

$36888

Gas

25516 mi

Very Good Deal  

0 (5)

2024 Genesis G70

$54454

Gas

1568 mi

Good Deal  

0 (5)

Porsche 911

$124900

Petrol

10,283 mi

Good Deal  

0 (5)

See More

What 2022 Meant for 2020 Car Buyers

Owners of vehicles bought in 2020 have a couple of options:

1. Sell or Trade-in for Maximum Profit

Given the high demand for used cars, many 2020 buyers can sell their vehicles at a profit or trade them in for a substantial amount.

2. Hold onto the Vehicle

If you don’t need to sell, keeping your car is still a great decision as the supply chain struggles continue to affect new car availability.

--SECOND CONTENT ADVERTISEMENT HERE--

Key Takeaways from the Market Shift

• The pandemic created a rare opportunity for buyers in 2020 to purchase vehicles at significantly reduced prices.
• Supply chain disruptions have driven car prices up in 2022 and beyond.
• Some vehicles have appreciated instead of depreciating, a rarity in the auto market.
• 2020 car owners can capitalize on the current high resale values.
• Car buyers today must weigh their options carefully due to inflated pricing.
• 

  2020 Lincoln Aviator

  $36811

  Gas

  81310 mi

  Very Good Deal  

  0 (5)

  

  2016 Audi A4 Allroad

  $11765

  Gas

  98864 mi

  Very Good Deal  

  0 (5)

  

  2023 Jaguar I-PACE

  $79999

  electric

  43 mi

  Good Deal  

  0 (5)

  See More
  
  

Final Thoughts

If history has taught us anything, it’s that the auto market is unpredictable. While prices have soared, they may eventually stabilize. However, waiting for the "perfect" time to buy a car can be risky, as ongoing supply chain issues mean prices might continue to rise.

Whether you’re selling, holding onto your car, or in the market for a new one, understanding market trends is essential. As always, doing thorough research and weighing your options can help ensure you make the best financial decision in today’s volatile auto industry.

--THIRD CONTENT ADVERTISEMENT HERE--