Average used car prices rise during the pandemic
(NewsNation Now) – Used car lots are inundated with new car prices.
As used vehicle prices exceed any seemingly rational level, this is the kind of scenario playing out in many car dealerships across the country. Prices have climbed so high, so fast, that buyers are increasingly excluded from the market.
A new report has found that the average price of a used car is up about 40% from a year ago, according to Edmunds.com.
The average monthly price for a used car is $ 520. This takes into account the down payment, the interest rates and the price of the vehicle.
This means that more than half of American households now have less income than what is deemed necessary to purchase a mid-priced used vehicle.
There are empty parking spaces in many new parking lots, which drives up the prices of used vehicles.
The shortage of microchips since the start of the pandemic has gone hand in hand with soaring prices and has spurred demand for more used vehicles as new cars are simply not being built.
Since March 2020, used car prices have increased by 42%. Dealers and owners do not have to lower asking prices due to high demand.
That puts the average price of a new car at over $ 29,000.
So if you have a budget for buying a car, you will probably need to buy one that has more miles or that is much older than you originally wanted.
Experts do not know when this price hike will abate. Some say 2023, others say it could be 2024 before car prices stabilize.