The Average Price of Used Vehicles in the US is on the Rise Again
It was a brief moment of relief for millions of people in the United States who were in the market for a used vehicle. For almost a year, the average price of a used car had been slowly decreasing, making it more affordable for many consumers. However, that trend has come to an end, and prices are once again on the rise.
In April of last year, the average price of a used vehicle reached an all-time high of $31,400. Since then, the price steadily decreased, reaching a low of $20,000 in November. However, as of July 2021, the average price has risen to $25,101. This represents an increase of nearly 25% from the low point in November.
Several factors have contributed to the increase in used car prices. One major factor is the ongoing global semiconductor shortage, which has impacted the production of new vehicles. As a result, many consumers have turned to the used car market, driving up demand and prices. Additionally, the pandemic has led to a decrease in the number of new cars being produced, further exacerbating the shortage.
Another factor is the increase in demand for vehicles as people return to work and travel. Many individuals who were previously using public transportation are now purchasing cars, leading to a surge in demand.
What Does This Mean for Consumers?
For consumers in the market for a used vehicle, this increase in prices may make it more difficult to find an affordable option. However, there are still ways to save money, such as shopping around and negotiating with dealers. Additionally, it may be worth considering leasing a new vehicle, as some dealerships are offering attractive lease deals to entice customers.
The Bottom Line
The brief period of relief for consumers in the used car market appears to be over, as prices are once again on the rise. While this may make it more difficult to find an affordable vehicle, there are still options available for savvy shoppers.