Connect with us

Hi, what are you looking for?

Business

Here’s why used cars are getting so expensive

The price of used cars is revving up even faster than new cars, and experts are sounding the alarm. “New car prices, used car prices, old used cars, trade-ins, I don’t care what it is. If you’re looking at car anything, it’s getting expensive,” Edmunds.com senior manager of insights Ivan Drury told FOX Business’ Jeff Flock. The car value expert reacted to the recent U.S. Department of Labor statistics which revealed that used car prices are up nearly 40% from last year. New cars are also up 12%. “Nothing, absolutely nothing compares to what we’re seeing in today’s market,” Drury said. According to Edmunds data, a three-year-old Dodge Grand Caravan is worth more than $25,000 today – up 69% from one year ago. A Nissan Versa of the same age cost $9,842 last January, but has since increased 66% to an average of $16,366. Get ready shell out more money, experts say prices aren’t going to fall until the end of the year. At Barbera Autoland in Philadelphia, a 2019 Chevy Equinox had an MSRP of $26,700 when it first rolled onto the lot. The sticker price today is $29,984. The higher prices are fueled by a global computer chip shortage, increased labor and production costs, as well as supply chain delays. “You could really attribute 90 to 95% of this problem with production down to just the chips,” Drury explained. While some companies like Ford previously stated the chip shortage could alleviate this year, dealers aren’t expecting prices to calm down until 2023. “It’s a dealer’s market, it’s a seller’s market, and we’ve seen that consumers are paying big premiums to buy a car,” Mark Schirmer with Cox Automotive told FOX Business. “New car prices will not be gaining like they have, but we also don’t expect significant drops in new or used car prices in the foreseeable future,” he said. FOX Business’ Jiovanni Lieggi contributed to this report.

Click to comment

Leave a Reply

Your email address will not be published.




Advertisement

You May Also Like

Business

Contact The Author Female employees at CNN are furious that chief spokesperson Allison Gollust is keeping her job after lying about her affair with...

Business

North Korean hackers managed to steal a fortune in cryptocurrency in 2021, according to the results of a recent study. Cybercriminals based in North...

Business

Katie Couric dished on Jeff Zucker and Allison Gollust’s relationship in her tell-all memoir last fall, saying it struck staffers as “super strange” when...

Business

Apple has started allowing some customers back into its New York City stores — just hours after the tech giant had banned all in-person...