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Used Vehicle Prices Expected To Rise Even Higher

Used vehicle prices, already sky high, will continue to rise, according to a new report.

Per an analysis from online automotive information company Edmunds, the average transaction price (ATP) for used vehicles in Q2 of the 2021 calendar year was up to $25,410, the highest-ever quarterly used ATP on record for the company. By comparison, used vehicle ATP in Q1 of the 2021 calendar year was $22,977, and $20,942 in Q2 of the 2020 calendar year.

“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Edmunds’ executive director of insights, Jessica Caldwell. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.”

However, unlike used vehicle prices, Edmunds states that the ATP for new vehicles is stabilizing, measured at $40,827 in Q2 of 2021. By comparison, the new vehicle ATP in Q1 of 2021 was set at $40,070, while the new vehicle ATP in Q2 of 2020 was set at $38,895.

Edmunds also provided insight with a breakdown of vehicle segment percentages. Critically, the pickup segment dropped to 17.1 percent in Q2 of 2021 (versus 22 percent in Q2 of 2020), while the percentages for SUVs and passenger cars increased, with SUVs up to 54.6 percent in Q2 of 2021 (versus 51.3 percent in Q2 of 2020), and passenger cars rising to 23.8 percent in Q2 of 2021 (versus 23 percent in Q2 of 2020).

Edmunds states that low pickup inventory is the influencing factor here, pushing consumers to SUVs and passenger cars instead. What’s more, Edmunds says that those car shoppers still buying are likely more affluent.

“This is not a buying environment for people on the fringe of being able to afford new car ownership,” Caldwell said. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.”

It’s advised that buyers looking to buy a vehicle maximize their trade-in value to take advantage of the sky-high used vehicle prices.

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Source: Edmunds

Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. I’m hoping the car companies will overproduce vehicles and thereby drop the prices dramatically so a deal can be made.

    Reply
    1. Keep an eye out for the 2022 Silverado “Limited” starting production next month. My guess is that Chevy is going to blow those out eventually to make room for the redesigned 2022 MCE next year.

      Reply
  2. Made a good deal on my old Acadia Denali and got a great trade value on my old one.

    If you can find what you want dealers are paying well on cars. They tried to low ball me but in the end gave me what I wanted.

    Reply
  3. I know its supply and demand. It is also American corporate GREED.

    Reply
  4. This is the result of the world wide supply chain disruption in 2020, it will take a long time to self correct. Anyone that doesn’t understand that is just kidding themselves. It took decades to create smooth high volume production it won’t be returned overnight.

    Reply
    1. they refit plants in 3 months to build different chip applications… the plants are overseas and are waiting to see if the US dollar stops falling before they refit for US auto makers… they are also waiting on green political stimulus decisions and fuel futures in the US… if the government goes green … there will be few chips and less fuel for internal combustion ….

      Reply
  5. When I bought my ’21 Sierra 1500 AT4 Carbonpro Duramax back in February, the guys at the dealer were telling me I could turn around & sell it immediately for a pretty good profit. I’m embarrassed to admit, now I’m actually thinking about it…

    Reply
    1. im thinking the same thing lol on my 2020 RST its worth more than i paid. But i need car and will end up over paying for somehing else.

      Reply
  6. just traded my 2020 sierra 1500 in for a 2021 Chevy 2500 and received six grand above what I paid for it over a year ago. plus a thousand dollar rebate from Costco. I figure take their money and run.

    Reply
  7. As the prices go higher, I won’t be a buyer!

    Reply
  8. I been waiting since January to buy a new GMC Sierra SLT…..NO CHIPS NO CHIPS, cant get the truck i want, and while I keep waiting, the value of my trade will keep going lower and lower !!!
    Maybe I should just break down and buy a TUNDRA !!!

    Reply
    1. if youre in an antonio tx good luck finding that too

      Reply
  9. Thank you biden administration as inflation explodes. Keep.paasing frivolous spending bills and printing money. Morons

    Reply
    1. That’s literally not what happened.

      Reply
      1. Yes it is.

        Reply
  10. in 6 months… the car bought today will have depreciated 25 %….. wait 6 to 9 months or simply lease if you can…

    Reply
  11. Bill, bill, bill. It’s called supply and demand. Take some basic econ classes.

    Reply
    1. right… but i wonder about the reak reasons besides chip shortages …. ???

      Reply

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