Experts say it’s due to a number of factors, including low inventory, both in the new and pre-owned car markets, as well as pandemic-related production shutdowns and a lack of computer chips needed for new cars.
Best cars to sell, worst cars to buy as the chip shortage sends prices soaring
(iSeeCars) – The global microchip shortage is restricting new car supply, which leads to restricted used car supply due to fewer people trading in their used cars. This combination of diminished supply and increased demand has caused used car prices to soar.
According to iSeeCars.com’s latest analysis of over 1.2 million used car sales in April 2021, used car prices increased 16.8 percent, or $3,926, compared to the same period the previous year. Used car prices typically remain relatively constant year over year, as 2019 had a 0.2 percent reduction over 2018, and 2020 had a 0.1 percent increase over 2019.
