As car prices rise, drivers flip cars for profit
A new trend that brings in big bucks is car flipping.
Denis Wang bought a new Tesla five months ago. However, a recent offer from his dealer was $101,000, too high for him to turn down. Wang paid his $87,000 for the new Tesla in March.
"This is insane! I'm going insane!" said the King.
Eddie Gribust surpassed Tesla's price by his $5,000.
"For the last two years I've been driving brand new cars and I haven't lost a cent," he said.
According to Edmunds.com, a car usually loses more than 20% of its value in his first year. But used car prices have actually risen he 53% since the pandemic began, according to the Bureau of Labor Statistics.
"Even basic cars like Honda Civics and Toyota Camrys, these cars are worth more in the used market than new," said Senior Automotive Insights. Manager Ivan Drury said. Edmonds shopping site.
Drury said buyers are turning to used cars because there aren't enough new cars, "essentially raising the price cap on used cars." said.
"You'll be in shock and awe!" he said of those looking to buy a basic used car. It's virtually guaranteed to be cheap."
But some automakers are cracking down. General Motors warns buyers that if the company's popular car is flipped over within his first 12 months, the warranty will expire. “We may unilaterally cancel orders that we believe were placed for resale,” Tesla said.
That is exactly what happened to the king.
"Unfortunately, the Tesla order was actually deleted," he said.
In this economic climate, it's a good idea to check the value of your car online, especially if you have a lease. You get a lot of bargaining power at the dealer because it's probably worth a lot more than you owe. Or you can sell it and turn its shares into cash. } Thank you for reading CBS NEWS.
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