As the COVID-19 pandemic continues to affect the American economy in a multitude of ways, many markets are seeing increased changes. For example, the used car market has completely flipped, resulting in equity changes that are unprecedented. Dealerships are seeing less new cars due to production halts, so there is a higher demand for used vehicles. This trend shows that the value of used cars is going up.
While most used vehicles depreciate in equity as soon as they are purchased, experts are seeing the demand shift due to the pandemic, which increases the value of the used car. This change in the market has affected the value of cars in a way that benefits all used car owners, specifically for those in need of a title loan. As the market changes and a vehicle increases in value, it may be time to utilize your title for funding during the pandemic.
The Demand for Used Cars Is Increasing as the Pandemic Continues
Since the coronavirus pandemic is slowing down the production and sale of cars, the used car market is experiencing more demand than usual. As a result of the pandemic, the value of used cars is going up compared to previous years. Experts suggest that the supply and demand is no longer balanced, which is caused by a lower supply of vehicles being produced while a higher demand exists in the market.
The Coronavirus pandemic halted most new car production for an upwards of nine weeks, meaning fewer cars are being produced while an increasing demand follows. Cars normally depreciate in value after they have been purchased. Financial expert Ivan Drury, senior manager of financial insights at Edmunds, claims that the market is seeing used cars not entirely depreciating in value, but retaining it! According to ABC News, some used vehicle models in high demand are worth more than when they were originally bought.
This is a phenomenon that is almost unprecedented in the car market within the United States.
As a result of the pandemic, research firm J.D. Power claims that nationwide, the used car market is seeing used vehicle sales spike an average of 17%. This is due in part to the interest rates being at an all-time low because of COVID-19, and a decline of vehicle inventory at most dealerships. Since production on new cars is declining, the usual inventory that dealerships hold is shifting.
According to the Kelley Blue Book, the past year the average price for a used sports car was $23, 055. This year, the average used sports car is fetching $24,867. The increase in price is $1,812, which is an increase of over 7% in one year alone! As most used cars will depreciate at least 20%-30% in value in the first year, this change has highly affected the automobile purchasing industry. Most financial experts would agree that after five years of owning a new car, your vehicle could have depreciated by at least 60% in value.
However, the COVID-19 pandemic has changed this entirely. As the pandemic continues to affect the economy within the United States, the prospect for the car industry is dismal as many factories are being expected to close. Without production each year, many factories and dealerships are unable to stand on their own. While it becomes a seller’s market for used car owners, financial experts are advising owners to act quickly and take advantage of their increased equity in these uncertain times.
Using the Value of Used Cars to Get Cash
If you are the owner of a used vehicle, the market has never been better for resale or title loans. The opportunity that used vehicle owners are faced with is one to take advantage of in this current climate, especially if you are in need of extra cash during the Coronavirus pandemic.
You may take advantage of your used vehicle’s equity in a multitude of ways. Depending on the used vehicle you have, you may have different financial options available to you. The financial experts with Kelley Blue Book have calculated that in 2020, the average equity for some vehicles are:
- Minivan: Average of $21,727
- Midsize SUV: Average of $24,766
- Midsize Truck: Average of $29,457
- Sports Car: Average of $24,867
- Large SUV: Average of $37,942
- Large Pickup: Average of $33,264
- Compact Car: Average of $14,859
- Subcompact SUV: Average of $17,169
- Heavy Duty Pickup: Average of $43,044
If your car fits into any of these categories, chances are your used vehicle has increased equity in todays used car market due to the high demand. One of the ways you can utilize your car’s equity in this market is through a title loan. With an auto title loan, the borrower’s title secures the Title Loan as collateral.
Due to the market for used cars increasing the value of your used car, now is the time to capitalize on your equity through a title loan!
For a title loan, a lender will generally offer anywhere from 25%-50% of the car’s current value. Since the market is increasing the value of used cars, it is to your advantage to choose a type of funding that can help you capitalize off of your used vehicle. While other types of alternative funding will generally rely on your credit history for approval, a title loan will focus more on the value of your collateral.
Using your vehicle’s equity through title loan can help you financially with supplying the cash you need, while simultaneously taking advantage of the current market. As used cars have and are continuing to increase in value due to the pandemic, now is the time to use your vehicle’s equity.
Has Online Lending Become a Safer Alternative with Title Loans?
With the coronavirus pandemic affecting the safety of in person loans, choosing online lenders has become the safer option for all parties involved. With the pandemic affecting our public access, title loan companies are taking safety precautions by offering contactless title loan products where customers can text, email, and do everything from their own home to avoid the risk of COVID-19.
This means that inquiring about a title loan is easier than ever. With the option to submit all the necessary documents online, safety for everyone has become a priority for lenders. As the convenience and safety of getting a title loan has the borrowers in mind, borrowers can safely receive the funding they need during the pandemic. Lenders are taking the high road and putting their employees and clients first to help end the Coronavirus pandemic.
How Can Max Cash® Title Loans Help Me Use The Value of Used Cars to Get Cash?
If you are new to understanding title loans and how to utilize your vehicle’s equity, you may be wondering how to connect to the right lender. That’s where Max Cash Title Loans can help.
While inquiring about a title loan may seem like a hassle, it can be a quick process through Max Cash Title Loans!
As a borrower, you will fill out a short inquiry form online, without ever having to leave your home! Borrowers can begin completely online, without exposing themselves to the dangers of the pandemic by visiting a public location.
If you have a used car with qualifying equity that you want to take advantage of in this market, start with Max Cash Title Loans. To begin right away head to our website and inquire about an online title loan or call a Max Cash Title Loans representative at 855-561-5626 right away! Representatives are available seven days a week to answer any loan questions you may have.