Trying to purchase a used automotive? Customers can anticipate increased prices and fewer stock at dealership tons.
Based on Carfax, itemizing costs for used vehicles in January have been 40% increased than in the identical interval final 12 months. The corporate mentioned the common itemizing for a used automotive is at present $28,000 — a report excessive.
“Traditionally you’ll consider it as the price of a brand new automotive,” Emily Voss, director of public relations at Carfax, advised ABC Information. “We have by no means seen a quantity like this for the common value of a used automotive nationally.”
Based on Edmunds, the worth is even increased: Its knowledge exhibits that the common value for a used automotive is at present $29,594, up 30% from a 12 months in the past.
International microchip shortages are being blamed for rising prices. Producers cannot get sufficient chips to maintain manufacturing strains working and demand for older vehicles is excessive.
“We’re seeing report costs and a part of that may be a huge scarcity of used automotive stock,” Voss mentioned. “What we hear about automotive chip shortages affecting manufacturing is trickle all the way down to older vehicles.”
For these customers who can afford the excessive price, you need to act quick. Automobiles.com specialists mentioned automobiles are shifting away from vendor tons inside per week, when it might have taken 30-60 days to promote out pre-pandemic.
When you get to a dealership, specialists say it is vital to maintain an open thoughts. Customers could must compromise their want record and increase their search in quest of a used automotive.
“Say you need a 2019 white Ford Edge. You are going to have a tough time discovering that particular automobile, when you broaden your search and say I am actually open to any mid-sized SUV ,” Voss mentioned.
Nevertheless, customers can get some reduction on the finish of the 12 months.
“There are headwinds proper now — new automotive provide is projected to enhance within the second half of the 12 months and shopper demand has slowed as a result of current COVID spike and better used automotive costs,” Voss mentioned.
Whereas the market is aggressive, Voss mentioned customers can nonetheless negotiate value.
“If value is a matter for you, use automobile historical past,” he mentioned. “A Automobile Historical past Report Can Inform You Whether or not a Automobile Is Properly Maintained” [or] If an accident was minor or severe. ,
ABC Information’ Sam Sweeney contributed to this report.