Midstate used car prices up 25%, but growth is slowing

Consumer

(WHTM) — Who would have thought one of the best investments someone could have made in 2020 would be a used car? They used to do nothing but go down in value, but not anymore.

“Prices have steadied in terms of the growth. They’re still a lot higher than they were a year ago,” Chris Basso, Carfax spokesperson, said.

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Prices are up an unprecedented 25% for all used vehicles, in the Midstate as well as nationally, compared to this time a year ago. Used truck prices are up 17% in the Midstate and 13% nationally.

Basso says the higher gas prices could be an influence on more consumers looking for smaller vehicles rather than trucks right now compared to six months ago. However, he says the average truck also just costs more than the average vehicle, too.

Nearly $38,000 for the average used truck in the Midstate compared to $24,000 for the average used vehicle overall, including both cars and trucks. No one can be sure exactly where prices will go from here, but a few things are clear.

“At some point, the supply will meet the demand. There’ll be more cars available, both new and used, for consumers to buy,” Basso said.

Basso says if people can wait on purchasing a used car, it is probably worth it. However, for those who can’t wait the advice is similar to navigating a hot housing market.

“Despite the difficulty in finding the vehicle you want, you don’t want to panic buy and rush into it. Make sure you take your time. If something doesn’t seem right, pump the brakes,” Basso said.

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