Used Car Prices More Expensive Than New

By

Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - July 20, 2021

There’s no end in sight for the ongoing chip shortage, which continues to see incredibly high prices for both new and used vehicles. While the coronavirus pandemic is to blame for the shortage, new car prices reached record levels before the pandemic started. The decrease in production of new vehicles and strong demand led to high new car prices. With consumers unable to buy new vehicles, they looked to the used car market, which led to used car prices skyrocketing. According to iSeeCars, certain used cars are more expensive than buying new.

The outlet recently put out a list of 16 vehicles that cost more used than new and a large number of them are popular choices. As one would expect, SUVs and pickup trucks dominate the list, though a few sedans and even a minivan make an appearance. In some cases, opting for a preowned vehicle could end up costing buyers thousands more than the average price of a comparable new vehicle.

The top five vehicles include the Kia Telluride, GMC Sierra 1500, Toyota Tacoma, Mercedes-Benz G-Class, and Toyota RAV4 Hybrid. Seeing the Telluride top the charts isn’t all that surprising. Kia has had trouble keeping up with demand for the Telluride as soon as the vehicle was introduced.

For the Telluride, the outlet claims that the vehicle carries a new car price of $44,166, while the used car price is hovering around $47,730. That’s a difference of $3,564 more for a used car versus a new one. For the fifth place RAV4 Hybrid, the price difference is $1,357 more for a used vehicle compared to a new one.

When it comes to vehicles with the largest price difference when comparing new to used vehicles, the G-Class is the leader. New models cost $182,631 and are selling for $190,078 used. So, consumers shopping for a used model are looking at spending $7,447 more than buying one new.

Other popular models that cost more used than new include the Dodge Challenger, Toyota 4Runner, Tesla Model 3, Honda Civic, Honda Odyssey, and Subaru WRX. In the case of the WRX, the sporty sedan costs $81 more on the used market than a comparable new model.

One of the largest reasons for the higher used car prices is that customers are unwilling to wait for a new vehicle. “Used car prices have risen overall, and prices have dramatically increased for certain in-demand models that may be harder to find on new car lots,” said iSeeCars Executive Analyst Karl Brauer. “Dealers may think used car buyers are willing to pay more for the instant gratification of a lightly-used vehicle they can drive right off the lot rather than waiting for a new one.”

While the majority of automakers allow customers to order a new vehicle straight from the factory, few are interested in waiting a few months for their vehicles to arrive. Instead, a lot of customers are willing to pay more for a car to be able to drive it away the same day. Unfortunately, customers looking to purchase a new vehicle at a dealership are looking at paying a dealer markup, but there are a few ways to avoid paying a markup if you’re really looking to purchase now. Additionally, consumers can wait to purchase a vehicle, but the chip shortage is likely to drag into 2022.

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Source: iSeeCars

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

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