![]() ![]() And unfortunately, with the Delta variant pushing COVID-19 cases higher around the globe, it’s looking more and more like the current production shortages are here to stay for a while. With both new and used car prices on the rise, the best course of action to take is simply not to buy a car at the moment.īut that’s not always an option. And thanks to the relatively low average transaction prices of this oldest segment, that’s only about half the dollar increase of the other groups. That’s a climb of 26% year-over-year, the second lowest percentage change in our analysis. Last month, it had risen by $2759 to $13,298. In 2020, the average cost of a nine-year-old car was $10,539. Yes, their prices are also up this year but not nearly as much as the newer age groups. The brightest spot in this story is nine-year-old cars. That makes a seven-year-old car, on average, the worst buy in today’s inventory-starved market. While that’s a slightly smaller number than either three- or five-year-old cars, as a percentage of average transaction prices, it’s notably more. Seven-year-old cars have also seen price hikes on average of over $5000 this year - $5283 to be exact. You might assume that moving to an even older car would mitigate the effects of the recent surge in used car prices. Since five-year-old cars generally sell for about $5000 less than three-year-old cars, that makes their percentage increase this year a whopping 31% (vs 25% for three-year-old vehicles). Last month, they cost buyers $5649 more on average than they did just one year ago. Surprisingly, five-year-old cars have seen almost the same dollar increase in their average selling prices this year, despite their lower average price point. While that may sound like a lot, it’s relatively mild compared to some other vehicle age groups. That’s a 25% surge compared to prices last year. Incredibly, the vast majority of that increase - $5723 - has come in 2021 alone, driven by pandemic-related shortages. We looked at recent sales data for three-, five-, seven-, and nine-year old cars and found some surprising results.įive years ago, the average transaction price for a three-year-old car was about $21,300. It turns out that, if you want to avoid sticker shock with a used car purchase right now, vehicle age matters. Some have seen price increases more than double those of others. ![]() That’s led to similar shortages of used cars for sale - and, you guessed it, a similar rise in prices.īut not all used cars have been affected equally. With new cars in short supply, shoppers have been turning to used cars instead. That compares with an average discount of $2331 off the sticker price last year. In fact, according to data provided by Edmunds, the average new car buyer in July 2021 received a discount of just $94 off the manufacturer’s suggested retail price (MSRP). And that means consumers are paying more for them. Due to worldwide production shortages during the COVID-19 pandemic, fewer new cars are making their way dealership lots. The average interest rate on a used car loan is 10.You’ve probably heard by now that car prices are on the rise. The average price of a new car is $46,382, according to an estimate from J.D. That situation is now easing, with modest improvements in dealer inventory as rising interest rates put pressure on affordability. "With the average price premium still at 30%, used car prices in America still have a long way to fall before they return to normal," CoPilot's report notes.ĭemand in the used car market skyrocketed during the pandemic as supply chain issues hampered automakers' ability to produce new vehicles. bonds How to balance retirement and emergency savings More from Personal Finance: 4 key money moves to make in an uncertain economy 2022 was the worst-ever year for U.S. However, the price is headed in the right direction for consumers: Six months ago, the app estimated, car buyers were paying about $10,000 above "normal." That amount is $7,146 (or 30%) more than if projected depreciation forecasts had held true. Last month, the average price for a used car was $30,899, according to CoPilot. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |