If you haven’t been to a dealership showroom lately or perused automakers’ sites much, you might not know just how expensive new cars have become. For example, the 2019 Kia Sportage starts at $23,750, while the 2019 Honda Pilot begins at $31,450. Manufacturers blame the spike in prices on all that cutting-edge tech we supposedly would die without having crammed into our vehicles.
According to The Wall Street Journal, used car demand surged during the summer. Analysts predict this increase in shoppers looking at used models will continue all the way until the end of 2018, and maybe even beyond. People are feeling the pinch, so getting something a few years old with some dings is a good way to save money.
Just as interesting, Edmunds notes that luxury car sales continue to be strong. The automotive site predicts 2018 will be a record-setting year for luxury models, showing just how deepening the economic divide has become. Luxury shoppers are especially interested in SUVs, which of course will be plastered with much chrome.
Wait, there’s more. Edmunds noticed that more brands are pushing upmarket, with luxury and mainstream vehicle prices moving closer and closer.
The unfortunate truth is as demand increases for used cars, prices are going up. This is happening even as a flood of lease trade-ins are flowing into the market, blowing your elementary understanding of supply and demand. The Truth About Cars notes that now the average used-car price has risen above $20,000, which is a first. So yes, it’s not just you getting older or stingier – vehicles are indeed becoming more expensive.