The average transaction price of a lightly used GMC Sierra 1500 is more than that of a brand new model, according to a recent study conducted by iSeeCars.com.
For this study, the automotive research firm analyzed over 470,000 new and lightly used cars listed for sale between June 1st and 14th, 2021. New cars were from model years 2020-2021, while lightly used cars were defined as used vehicles from model years 2019-2020 with mileage within 20 percent of 13,476, the average annual miles travelled in the U.S, based on Department of Transportation data.
The study found the average transaction price for a lightly used 2019 or 2020 GMC Sierra 1500 was $57,671, while the average transaction price for a brand-new model was $3,466 less at $54,205. That means a used GMC Sierra 1500 was on average 6.4 percent more expensive than a new one – the second-highest percentage difference between new and used for any model currently on sale. The GMC Sierra was outpaced only by the hugely popular Kia Telluride crossover, which was 8.1 percent more expensive used than new.
Used vehicle prices have been rising rapidly in the first seven months of 2021 as the semiconductor chip shortage and other production setbacks related to the COVID-19 pandemic hamper production output. With fewer new vehicles on dealership lots, more customers are turning to the used market to find the vehicle they want. iSeeCars chief analyst Karl Brauer believes these customers are willing to pay top dollar for a used vehicle as well, because they want to be able to drive it off the lot that day.
“Used car prices have risen overall, and prices have dramatically increased for certain in-demand models that may be harder to find on new car lots,” Brauer explained. “Dealers may think used-car buyers are willing to pay more for the instant gratification of a lightly used vehicle they can drive right off the lot rather than waiting for a new one.”
Other vehicles that are more expensive to buy lightly used than new include the Toyota Tacoma, Mercedes-Benz G-Class, Toyota RAV4, Toyota Tundra and Dodge Challenger.
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Comments
People want to pay more for that cheap, crappy interior!
The sum of its parts are greater than a single area. The better quality is what they are buying.
I had one myself a 2020 Cardinal Red Sierra 1500 elevation with 9600 miles on it. And I sold it for a profit I paid $44,900 for it had it for 7 months paid it down to about $41,000 and sold it to a GMC dealership for 51,500. The sticker price on the truck was $53,600 I just checked online the other day the dealership has it listed for $56,600. These dealerships are really price gouging out here and I figured I’ll take advantage of it.
Sold a 2021 GMC Denali. Payed 64,000 with rebates. Put 8200 miles on it. Traded it in for 64,000 what I payed. Got a brand new 2021 Highlander and payed off the truck and Toyota is payed for.
Why would you buy a GMC for a Toyota!
Correction. It doesn’t cost that much, but ignorant or desperate people are willing to pay that much. Forget that. Just hold on to what you have now, this will pass soon enough. Heck, my ’98 Silverado is flling apart, but I’m still driving it. I had 3 ppl this last 2 weeks offer me $5k and more for my truck, 1 guy raised his offer up to $8k if I sold it to him at the gas station. But I’m not stupid, I know I can’t buy another one for that price, and I need mine for my business.
Banks will not lend more than ACV anyway. So if there is a dealership holding premium on their used inventory, just walk away. They’ll call you back shortly.
Jeremiah McKenna,
Banks dont have to lend more than ACV. The dealer will make a deal with the bank to pay them the money at the end of the loan after an initial denial. So for a 55k vehicle that’s only worth 50k, the bank will NOT assume that risk. The dealer pays the 5k up front for you with interest over the life of the loan (or a flat fee) while the bank charges you interest on the same 5k, and the last few payment you make go back to the dealership for the 5k. Complex, but totally doable.
This is one of the most incorrect comments I’ve ever read
I love reading the GM Authority comments section for all the fake facts
B.S. You mean to tell me, my 2014 Silverado 6.2… 1500… High Country…LOADED….with 14,400 miles…1 owner…is worth north of 40k……B.S……..but I’ll take offers at that price……now bid people…. lol…sticker was 58k……
Working at a GM Dealer Banks will typically lend 120-135% of the vehicles value. This accounts for negative equity,taxes,fees and market adjustments.
I need GMC
What is going to happen when they get the chips for all the 2021 setting around and it is 2022,. Will they discount them to make room for the 2022? I don’t think so, they will just gouge you even more!
How about a list of the bottom 16 on that scale?
These dealers the biggest thieves I have ever seen they act like everyone is stupid to give them their money like it grows on trees. I personally would never give these thieves my hard earned money FOR A USED TRUCK. Prices for used and new cars and trucks are outrageous I have been looking for truck for over a year I’m just priced to death I can’t see paying that much. It just pitiful.
Now is this due to incentives on new vehicles? Also is this price based on similar models or the average transaction price of new vehicles vs used vehicles? If so it would kind of make sense since luxury and higher trim vehicles are constantly becoming more popular and the chip shortage will most likely affect production of higher trim vehicles. So people buy the only available Denali or etc trim on the lot.
By September-October 2021 things will change. The chips correction will no doubt cause a huge overstock of 2021 models for sale and 2022 new arrivals. That will be the time to buy!
All the truck makers have fields full of built trucks with no chips. When the chip issue is fixed, there will be.plenty of trucks waiting to be purchased.