Amidst Microchip and Parts Shortage, Used Car Prices Higher Than Ever Before
If you’re in the market for a used car, get ready for some sticker shock as secondhand car prices are higher than ever before.
According to www.iseecars.com‘s latest study, the price gap between new and slightly used cars has drastically narrowed. In June, the average lightly used car cost around 3% less than its new version, compared to the first half of November 2020, when they cost almost 11% less.
Erick Wicklund General Manager of Brewbaker Motors said the insanity because the demand for used cars far ouweighs their supply, pushing prices higher and higher.
The market for used cars is directly intertwined with the new car market. Right now, there is a shortage in microchips and other parts. As companies struggle to get supplies for new cars, used car prices go up.
However, if you’re looking to trade in your car, you’ll get more money for it now than ever. Wicklund says to keep this in mind when looking to trade and buy.
“If your looking for a used car right now and you have a trade, its not really going to matter,” Wicklund said. “Even though the prices are high, your used car price that you’re trading in is gonna be worth more.”
Wicklund does believe used car prices will fall back towards normal by the fall as companies release new lines of vehicles.
