New and Used Car Price Outlook for 2022 in Arizona
“If you don’t need a vehicle right now, it’s probably best to wait a bit,” said Dave Martin of Martin’s Auto Repair.
ARIZONA, USA — Buyers of new cars are now paying more than they ever have, and prices aren’t expected to drop any time soon.
The average price of a new car hit a record high of $45,031 in September, according to a Kelley Blue Book report. This price is a 12% increase from 2020.
“As long as demand continues, prices are going to stay up there,” said Dave Martin of Martin’s Auto Repair in Phoenix. “You’re going to pay top dollar for a vehicle right now. If you don’t need a vehicle right now, it’s probably best to wait a bit.”
The current outlook for 2022 does not foresee a price drop.
Another report from IHS Markit found that people are also keeping their used cars for 12.1 years, far longer than previous years. People who have sold their vehicles recently have faced high prices in today’s market.
“With the chip shortage that started all of this, new vehicles are really hard to come by and used vehicles are at an all-time high,” Martin said. “The pent-up demand for vehicles right now is what’s driving [the price increase].”
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Another contributing factor is the work-from-home movement that has been set in motion by the COVID-19 pandemic. It’s no surprise that the same IHS Markit report found a 13% reduction in miles driven between 2019 and 2020.
“Rising average age will further increase vehicle maintenance opportunities from an increasingly aging vehicle fleet,” the report said.
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