The last year or so has been the worst time to buy a car in the history of the business.
Don't think that buying a secondhand vehicle will shield you from the challenges and high costs of living. In "normal times," buying used was the thrifty option; now some used models are selling for thousands above the suggested retail price for their brand-new counterparts.
Out of the ten most popular vehicles in the US, seven cost more than the manufacturer's suggested retail price. The Kelley Blue Book data was used to compare retail prices to the prices of 2021. Base models were the focus.
The Toyota RAV4 is the country's best-selling SUV and it costs almost $6,000 more for a used 2021 model than it does for a new one. The differentials are for the other vehicles.
This has been true for a long time. The supply of new cars in the US has been disrupted due to a shortage of chips. The US car dealers ended July with over one million unsold cars, as compared with 3.69 million in July of 2019.
The average price for non-luxury cars was $875 above retail in July. Before the swine flu, dealers were not able to charge above retail.
Consumers are willing to pay more for used versions of their favorite models due to fewer new cars on the market. As used-car prices trended higher, the traditional wisdom that a new vehicle loses thousands in value immediately has not held up. The bad news is that used cars seem to be getting more affordable.
All Rights Reserved © 2024
