As the global semiconductor shortage continues to constrain the supply of new cars, buyers continue to move into the used market, dramatically raising used car prices. Even high mileage cars go for a lot more parts than they have ever done before. Understandably, the costs of “lightly used” vehicles are so high right now that a handful of highly sought-after models sold for more money used than new last month.
Based on data from 470,000 listings for sale in June, iSeeCars compared prices between used cars from the 2019 and 2020 model years versus new cars from the 2020 and 2021 model years. only 3.1% against 10.8% in November 2021. Some models were even negative, which means that the used ones were more expensive than the new examples.
Why spend more money on a used car rather than a new one, you will tell me? Because the new ones just aren’t available and people aren’t willing to wait.
“Used car prices have increased overall, and prices have increased significantly for some in-demand models that may be more difficult to find on new car lots,” iSeeCars said. eexecutive analyst Karl Brauer. “Dealers may think that used car buyers are willing to pay more for the instant gratification of a little-used vehicle than they can drive right off the bat rather than wait for a new one.”
It should be noted that iSeeCars’ definition of a “lightly used car” is “a used vehicle of the 2019-2020 model years with less than 20% mileage of 13,476, the average annual mileage driven in the United States. United, according to the Department of Transportation. “
When it comes to specific models that, statistically, are currently more expensive used than new, the much-requested Kia Telluride tops the list with the greatest “used premium” in terms of proportion and pure dollars and simple. The used examples cost an average of $ 47,730, while the new ones traded hands for $ 44,166, a difference of about $ 3,500 or 8.1%.
“The Kia Telluride has been a hot seller since its debut in the spring of 2019, and dealers are charging MSRP because it’s in high demand,” Brauer said. “The price increases have trickled down to the used car market, where used Tellurides are not yet plentiful and buyers may be willing to pay too much for a used version which is probably the only one available. . “
Unsurprisingly, the rest of the list is made up almost entirely of trucks, SUVs, and crossovers, with the top five being the GMC Sierra 1500, Toyota Tacoma, Mercedes G-Wagen, and Toyota RAV4 Hybrid. The only cars to make the top 10 were the Dodge Challenger in seventh place and the Tesla Model 3, which topped the Honda Civic for 10th place. The Telluride’s Hyundai Palisade platform mate, meanwhile, occupies number nine.
No one has a crystal ball to predict exactly when this used car market craze will end, but, for what it’s worth, the Federal Reserve recently predicted it would last another six to nine months.
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