Why are older cars getting so expensive?

The average nine-year-old car changed hands for $13,250 in June, according to automotive research site Edmunds. The insanity all comes down to simple economics: demand for used cars far outweighs their supply, pushing prices higher and higher.

Are new cars overpriced right now?

As the supply of new vehicles has spiraled downward, average transaction prices have skyrocketed. According to Edmunds, people are buying new cars for $278 above their suggested retail price on average. It’s a huge shift from before the pandemic, when paying $2,000-$3,000 below retail was typical.

How long will the car shortage last?

This group also indicated they’d accept up to a 13\% markup on the price, or $5,600 more than the average MSRP as KBB calculated. The chip shortage isn’t likely to resolve itself until well into 2022, and eventually, the group of people willing to pay a higher price may run dry.

Do used car prices go down when new models come out?

In other words, buying a used version of a recently redesigned model can save you serious money. Since many buyers seek the latest and greatest technology, car prices for outgoing models naturally take a dip when new models arrive.

Are the car prices going to drop?

That’s not an exaggeration: In April 2020, the U.S. saw auto production drop 99\% from February 2020 levels, according to U.S. Bureau of Economic Analysis data. In total, U.S. car production fell 23\% in 2020, and it’s currently on pace to fall another 8\% this year.

Are used cars more expensive now than new cars?

Thanks to record shortages of new vehicles, many used cars are selling for more money than their exact new car counterparts. The average used car is now nearly 30 percent more expensive than it was last year right before the lockdowns.

Are used cars really more expensive during lockdown?

At least when it comes to buying your next car. Thanks to record shortages of new vehicles, many used cars are selling for more money than their exact new car counterparts. The average used car is now nearly 30 percent more expensive than it was last year right before the lockdowns.

Why are hybrids so expensive?

Hybrids are typically more expensive because they have two power trains inside them, and then with electric vehicles, it’s the battery. The Hyundai Kona is a good example of this, according to DeLorenzo: The electric version costs $10,000 more than the standard version! “A lot of that can be attributed to the cost of the batteries,” he says.

Why are diesel engines so expensive?

Diesel-engine vehicles get expensive because of all the things they have to do to them to meet emissions standards. Hybrids are typically more expensive because they have two power trains inside them, and then with electric vehicles, it’s the battery.