If your car has suffered from a collision resulting in needing to call an auto body shop, you may have started looking at used vehicles as an alternative option and found the prices have surged in the last two years. With used car prices reaching an all-time high due to a shortage of much-needed components, the question is being asked of when will the bubble burst? There's no way to tell precisely when this will occur, but it looks like it is on the horizon, so here's more.

What Started the Bubble?

The traditional mindset of when there is not enough supply to meet the demand will make items more valuable, and that is what has happened with the used car business. The main reason that has contributed to this and the first one is a lack of supplies, mainly semiconductor chips required for vehicles. There are only a few of these manufacturers in the world, and it is estimated that the shortage will last until 2023 due to the demand of consumers.

Traditionally, the car market depends on people selling their used cars and then upgrading to newer ones, but the lack of components available has caused the used vehicle pricing to surge. And these actions have created a unique supply and demand situation resulting in this current bubble.

The Bubble Looks Close to Popping in the Next Few Months

If you are holding off on waiting to purchase a used car, the experts are stating that the used car prices are likely to start slowing as close as the end of the year or the beginning of 2023.

One contributing factor is that many OEMs have started cutting back on additional features like auto folding mirrors and heated seats to provide more components for other new cars. Also, the Federal Reserve is also increasing interest rates. This has made new car purchases less attractive and slowed sales but in turn, has helped build up their new car stock, meaning more variety.

If You Plan on Selling, Now is the Time

If you have a vehicle that needs minor work like paintless dent repair, you have an excellent opportunity to make some money off your car. Dealers are competing for used vehicles right now, and if you wait, you may not get the same chance later on.

Suburban Auto Body, a Trusted Name in Honest Services

As you can see, several factors will affect the outcome of when the bubble will burst, and if you are choosing to wait to sell or buy, you want to keep your vehicle in the best shape possible.

Choosing a professional company that's been in business for over 40 years means you are going to be getting the highest level of expert care, and Suburban Auto Body is your number one choice. We are locally owned in Minnesota and specialize in multiple options, including fleet management services and car bumper repair that our community depends on.

We want to get your vehicle back on the road safely, so message us online or call us at 651-633-8900 for your free estimate today.