The market for used cars has completely stopped functioning. They did just when it seemed like things couldn't get any stranger.
The most basic, low-demand economy cars are now worth more in the secondhand market than new. Several of these vehicles have experienced some of the most drastic year-over-year value increases of any used vehicle, according to a new study from automotive research site and search engine i SeeCars.
The average used Mirage will cost you more than it would have cost in November 2020, according to the study. The price of a used Chevrolet Spark has increased by $5,275. The average secondhand car has gone up in value by $4,790 and is now worth $16,135.
People are willing to pay the same for used Mirage, Spark, or Rio as they are willing to pay for a brand-new one.
The Mirage is a car.
It was the Mitsubishi.
It's understandable that popular SUVs and pickup trucks are going for big money in this frenzied car market. Before the Pandemic, no one would have considered these small, cheap cars a hot commodity. They're the kind of vehicle that's going out of style in favor of SUVs.
The computer chip shortage is one of the reasons that new cars are in short supply. The price of used cars has gone up due to that, and even not-terribly-popular models are starting to look more appealing.
SUVs have become so expensive that they are out of reach for many buyers, forcing people to look at small cars and sedans.
He said that the small cars were the least bad deal. He said that interest in small cars bubbled up recently, once price hikes had already hit pickup trucks, convertibles and SUVs.
The Rio was a car.
It's called Kia.
Demand for fuel efficient models may be affected by rising gas prices. That could help explain why the Nissan Leaf and the hybrid Toyota Prius made the list of the 10 used cars with the greatest price increases.
It's not reassuring that the researcher compiled a list of used vehicles with the lowest price increases. The list is dominated by expensive luxury vehicles that are still shooting up in value, but not as quickly as the rest of the market.
The lowest price increase over the last year was for the Volvo XC90 SUV. The average cost is 9.3% more than it would have been last November. This is not the way things should be.
He said that a car shouldn't be going up in value except for rare, unique cars and classic cars. A new car is not a good thing to buy.
