‘We need a new car;’ High used car prices make finding affordable cars more difficult for customers
Many people are finding that inflation is making it more difficult to find an affordable car.
Customers heading to used car lots are still struggling to find good deals on cars, like Anthony Aceto who was shopping for an SUV.
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“Not really, but we need a new car, ours is falling apart,” Aceto said when asked if he had found any good deals.
Despite used car prices are down from a year ago, they are still much higher than pre-pandemic prices, rising nearly 485 since 2019.
Auto Sales Site I-See-Cars Executive Analyst Karl Brauer says it dates back to the supply chain issues related to the pandemic that led to a new car shortage.
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“That immediately drove people into the used car market and drove up used car prices. Now those new cars are used cars. Those 2020 through 2022 calendar year model year cars,” Brauer said. “Those are limited and rare in the used car space. So it’s just maintaining these high used car prices.”
The biggest price increases are among some of the most popular cars on the market.
The Ram 1500 pickup is $15,000 more expensive than 2019 and the Toyota Camry is up nearly $8,000.
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Some customers are wondering if it would make more sense to opt for a new car rather than a used car.
“In many instances, for buyers depending on their budget, and what they really need, a new car does make more sense,” Brauer said.
The typical loan rate for a new car is 7.4%, which is much lower than a used car loan.
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However, with an average price of just under $48,000, new cars are more expensive overall.
Experts say being flexible is key when looking for a good deal.
Being willing to choose from a wide range of vehicles will give you more power to negotiate.
