Used Car Market Reaches Sky-High Valuation, Are We in a Bubble?

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This 2021 C8 Corvette listed on eBay for $76,900 shows everything that’s wrong with the used car market today. Although it is more expensive than a new car, it’s still way cheaper than other comparable cars in a pristine condition listed for sale. Experts warn we’re in a bubble, but when will it burst? As you probably know already, the car industry has been in a bit of a mess for quite some time now, with deliveries way behind schedule. Blame the international heatlh crisis, the chip shortage, or anything else that disrupted the supply chains, but the result is people have to wait a lot to get their new cars. And by a lot, we mean unreasonably long waiting times, which urge many to consider buying a low mileage used car instead. In the case of the C8 Corvette, the waiting time stretches to more than a year, while those wanting a Z06 version will have to wait a lot longer than that. To make matters worse, the factory that was supposed to run at full capacity producing Vettes has had its fair share of problems. Not only production was affected by the tornado that hit the plant on December 11, but also more than a hundred cars were destroyed on the production line. This makes the 2022 Corvette a very rare bird indeed. These are the market conditions and not only for exclusive sports cars but also for volume models. You see the sticker price is only relevant now if you are willing to patiently wait all this time to get a car you might not even want three years down the road. No wonder used vehicles sell for insane amounts of money and in the case of a low mileage C8 Corvette, this usually means around $100,000. That’s 50% more than their new price, so high is the demand. Knowing all this, you will find it perfectly normal to see a salvage title C8 Corvette listed on eBay for $76,900. Depending on the rules and regulations in your state you may or may not be able to register it. But if you are lucky, you could even consider this a bargain. Apart from the missing front bumper and some parts damaged, mostly in the front section, this car is as good as it gets and could be fixed for less than $10,000. The used car market bubble is fueled by its own price hikes, with people willing to sell their new car for more than they paid for it. Experts warn the bubble might burst as soon as the auto industry will sort out its problems. This means as early as next year if we take carmakers’ CEOs’ optimism for more than wishful thinking. In that case, those who bought an overpriced used car might regret not waiting a couple of months longer.