Why Are Car Prices Going Up
If you’ve been looking to buy or sell a car recently, you may have noticed that used car prices have been going up across the country.
Why are car prices going up?
It’s all due to the coronavirus pandemic which has caused supply chain issues and altered buying patterns, resulting in a limited number of new vehicles on the market. In fact, JPMorgan has noted that new vehicle prices have increased nationwide by a whopping 40% from February 2020 to June 2021, and there’s no sign of prices coming down anytime soon.
This has had a ripple effect in the auto industry that has seen the price of used cars often exceeding the price of new vehicles.
Learn more about why car prices are going up in this guide from Sam Leman Automotive Group, and let our finance team provide you with some tips on how to shop for a used car in today’s market.
Are Used Car Prices Going Up?
In June of 2021 alone, used car prices jumped 30%. Why? Demand for used vehicles is currently exceeding the supply. The market for used cars is typically driven by the new car market, and the inventory of new cars has dropped 54% in June 2021 as compared to June 2019.
The production of new vehicles has stalled due to plant closures and slowdowns resulting from the pandemic. A shortage of semiconductor chips is the culprit, slowing car production worldwide. This has resulted in more consumers looking to buy used vehicles, which in turn has put a big dent in used vehicle inventories.
Used Car Buying Tips
Once the production of new cars picks up again, we will likely see the prices of used vehicles drop in the Central Illinois area. If you are shopping for a used car now, there are some things that you should do to get the best deal possible:
- Research – You can check sources such as Edmunds.com and Kelley Blue Book to find out which used models tend to be the longest lasting.
- Don’t Limit Your Search – It will help when negotiating to have a broader range of used vehicles that will suit your needs. Limiting your search to a specific model and trim can squeeze you into paying more than you can afford.
- Vehicle History – When you have found a used car that you are interested in, make sure to take a look at the vehicle history. You want a car that has a clean title and that has been kept up to date on all scheduled maintenance.
Find Used Cars Today at Sam Leman Automotive Group
New and used car prices are going up, so if you absolutely need to upgrade your commute with a pre-owned vehicle you should visit Sam Leman Automotive Group. Our prices are very competitive, and we offer used vehicle specials to help you get the best deal. We are also ready to buy your car, whether you wish to trade it in or sell it for cash. If you have any questions or would like to arrange a test drive, please feel free to contact us.
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