Right here’s why used vehicles are getting so costly

The value of used vehicles is revving up even quicker than new vehicles, and consultants are sounding the alarm.

“New automobile costs, used automobile costs, outdated used vehicles, trade-ins, I don’t care what it’s. Should you’re automobile something, it’s getting costly,” Edmunds.com senior supervisor of insights Ivan Drury informed FOX Enterprise’ Jeff Flock.

The automobile worth knowledgeable reacted to the current U.S. Division of Labor statistics which revealed that used automobile costs are up practically 40% from final yr. New vehicles are additionally up 12%.

“Nothing, completely nothing compares to what we’re seeing in at present’s market,” Drury mentioned.

In line with Edmunds knowledge, a three-year-old Dodge Grand Caravan is price greater than $25,000 at present – up 69% from one yr in the past. A Nissan Versa of the identical age price $9,842 final January, however has since elevated 66% to a mean of $16,366.

Prepare shell out more cash, consultants say costs aren’t going to fall till the tip of the yr.

At Barbera Autoland in Philadelphia, a 2019 Chevy Equinox had an MSRP of $26,700 when it first rolled onto the lot. The sticker value at present is $29,984.

The greater costs are fueled by a world laptop chip scarcity, elevated labor and manufacturing prices, in addition to provide chain delays.

Consultants say automobile costs are unlikely to fall till the tip of 2022.
Corbis by way of Getty Photos

“You may actually attribute 90 to 95% of this downside with manufacturing down to simply the chips,” Drury defined.

Whereas some firms like Ford beforehand acknowledged the chip scarcity may alleviate this yr, sellers aren’t anticipating costs to settle down till 2023.

“It’s a seller’s market, it’s a vendor’s market, and we’ve seen that customers are paying large premiums to purchase a automobile,” Mark Schirmer with Cox Automotive informed FOX Enterprise.

“New automobile costs is not going to be gaining like they’ve, however we additionally don’t count on vital drops in new or used automobile costs within the foreseeable future,” he mentioned.

FOX Enterprise’ Jiovanni Lieggi contributed to this report.

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