Cheap Used Car Prices Are Inflating

Have you looked for a reasonably-priced used vehicle lately? If so, you already know that getting a good deal on one is difficult, if not seemingly impossible. Automotive News confirmed this trend of sedans and small cars ranging from $10,000 to $15,000 spiking in value.

Where this problem stems from is a lack of supply. Thanks to people grabbing lots of big SUVs and trucks lately, there’s a shortage of used sedans and small vehicles. Scarcity increases the price of things, and so shoppers who don’t want to finance something new are finding themselves in a tricky spot.

The report highlights how dealers can’t keep affordable used cars on their lots. They get snatched up quickly at auction, too. Prices are climbing, with Edmunds estimating an average increase of 3.9 percent. Of course, exactly what vehicle you want could mean a much steeper cost.

This is an interesting situation. You have one group of shoppers who will buy vehicles at long loan terms, not care about high fuel and insurance costs for a vehicle, etc. The other group is on the hunt for something affordable all around, but they’re dependent on what the first group has already purchased, then ditched. Exactly how to get around that is the next question to answer.