Used Cars Are in Higher Demand Than Ever

Drivers often would look at used cars as a way to save money over buying a brand new option but that doesn’t seem to be the case right now.

Thanks to the worldwide Covid19 pandemic, auto manufacturers are running into some challenges they weren’t expecting. Times are changing, and buying a used car may not be the cheapest option.

There are certainly plenty of used car dealerships that can offer vehicles at an amazing value, but the current situation has led to some used vehicles actually costing more than their new counterparts. Ultimately, it’s a situation of supply and demand.

Make sure you’re aware of the full situation before visiting your local new or used car dealership.

Computer Chips Slowing The Line

We usually think of new computer chips helping speed up our machines. In the car industry, it’s the lack of computer chips that are slowing things down. Automakers are having trouble finding these necessary parts to put their new cars on the road. Many shoppers have already reserved or purchased their new vehicle but have to wait to actually take it home.

With a slowdown of new vehicles available, prices are starting to soar. Even with automakers seeing an uptick in sales this year, the numbers aren’t where they could be due to the shortage of new vehicles and rising prices.

Used Cars Are In High Demand

With a shortage of new cars on the lots, drivers looking for a fresh ride are looking towards used models. Pre-owned cars were already popular options for those looking to spend less on their transportation, but now everyone is looking at used cars since there is no need to wait for computer chips.

With drivers dealing with financial uncertainty, fewer used cars are going back to the dealership as trade-ins or sales. These drivers are holding on to cars that they may have upgraded previously. That means there isn’t just a shortage of new cars out there; used cars are also being snatched up as soon as their available.

As we learned in Business 101, a dwindling supply with high demand means higher prices across the board.

Hard To Find Means Higher Prices

With some vehicles being more popular than others, finding a good price at your local used car dealership can be tricky, especially when high demand reveals higher pricing for used options versus new ones.

Here are several of the vehicles that have flip-flopped prices because of their high demand:

Kia Telluride

On average, this full-size SUV costs $44,166 fresh off the assembly line. The averaged used price for this same vehicle is $47,730. That’s an 8.1% difference.

Toyota RAV4 Hybrid

When it comes to eco-friendly SUVs, the RAV4 is a popular option. Brand new, this beast tends to cost $34,995. A used version of the RAV4 will run you around $36,352 for a 3.9% difference.

Toyota 4Runner

The 4Runner may be one of the most sought-after family SUVs out there. Brand new, the average cost is $45,382. The average used price for this option is $46,867 for a 3.3% difference.

Hyundai Palisade

Luxury SUVs have come a long way, especially when you look at the Hyundai Palisade. Brand new, you’ll spend an average of $44,063 for one of these. On average, a used option will cost $45,356, which is a 2.9% difference.

Honda Odyssey

The Honda Odyssey has pretty much topped the minivan market for ages. A new minivan will cost about $37,612, while a used option comes in at $38,048: a 1.2% difference.