If you’re in the market for a new or used vehicle right now, be prepared for sticker shock.
A recent report from vehicle research site iSeeCars.com indicates that used car prices have soared nearly 17% over the past year.
Here’s Why Car Prices Are on the Rise
There is currently a limited supply of new cars because of a global shortage of the computer chips that go in them. Many of the factories that made those chips shut down during the pandemic, and production is just starting to ramp back up.
“There is an extreme shortage of most models of vehicles,” money expert Clark Howard said in a recent podcast.
“The average purchase price of a new vehicle right now is in the stratosphere. So it’s a great time to be a seller of a used vehicle, and it’s a brutal time to be a buyer of a new or used vehicle,” said Clark.
And his assessment is right on the money with the latest data from iSeeCars, which analyzed more than 1 million used vehicles from April 2020 to April 2021. The site looked at average listing prices of model years ranging from 2015 to 2020 to determine which ones had price increases and how big those increases were.
Let’s take a look at the vehicles with the biggest price hikes over the past year, according to iSeeCars.
These Cars Have Had the Biggest Price Increases
| Used Vehicle | Average Used Car Price | $ Price Change From Last Year | Year-Over-Year % Price Change |
|---|---|---|---|
| Chevrolet Corvette | $68,804 | $17,432 | 33.9% |
| Mercedes-Benz G-Class | $148,937 | $37,161 | 33.2% |
| Ram Pickup 1500 | $35,798 | $8,002 | 28.8% |
| GMC Sierra 1500 | $42,347 | $9,418 | 28.6% |
| Mercedes-Benz S-Class | $74,326 | $16,198 | 27.9% |
| Chevrolet Silverado 1500 | $37,324 | $7,960 | 27.1% |
| Chevrolet Camaro | $31,220 | $6,582 | 26.7% |
| Toyota Tundra | $40,470 | $8,356 | 26.0% |
| Mitsubishi Mirage | $11,242 | $2,313 | 25.9% |
| Land Rover Range Rover Sport | $59,579 | $11,969 | 25.1% |
| Average | $27,297 | $3,926 | 16.8% |
If you’re looking to buy a car, this is great information on which vehicles to avoid, but if you happen to own one of these, you may find a benefit if you want to trade it in.
“Shoppers interested in these vehicles should consider holding off on purchasing them, while consumers who have these vehicles in their garage and are willing to part with them can take advantage of these significantly higher trade-in values,” iSeeCars Executive Analyst Karl Brauer says in the report.
Clark continues to recommend buying used vehicles that are around three years old to get the best value. That’s because the initial owner will bear most of the depreciation, while the second owner will get a car that will hold most of its remaining value.
Interested in more money-saving tips? Read Clark’s Used Car Buying Guide.
