SAN DIEGO COUNTY, Calif. — Used car prices are so high right now, that some people are selling their vehicles for more than they originally paid for them several years ago.
It’s happening across the country and experts say that trend could continue for several months.
“It is crazy,” said Ivan Mendelson, General Manager at Toyota of Carlsbad. “It is supply and demand.”
Mendelson has been selling cars for decades and says he's never seen anything quite like this.
“Just like supplies of wood or anything else - we're seeing the prices - the values tick up quite a bit.” Mendelson said.
How much higher? Kevin Roberts with the automotive research and shopping website, CarGurus, says the average price for a used car is 34.7% higher than this same time last year.
He said a combination of things are driving up car prices right now - including a semi-conductor shortage that's slowing down new car production. That’s creating a domino effect. With less people buying new cars, less used cars are being traded in.
Also factoring into the equation, Roberts said some people don't feel comfortable right now using public transportation.
“In a post COVID world - we're seeing people being much more interested in private mobility,” Roberts said.
If you're in the market for a car, experts said you should expand your search area. That could open you up to some better deals. They also say to avoid what's popular right now.
Pick-ups and SUVs are flying off lots. Finally, if you find a good deal, don't wait.
“When you do find a vehicle that fits your criteria, act quickly,” said Roberts. “That might not be there as long as it had in the past.”
The folks at Toyota of Carlsbad add that there are a lot of great low interest rate deals out there, so even though prices are higher, you can still find ways to keep payments down.
But the bottom line is simple - it's a seller's market right now - so if you have an extra car at home that you're no longer using, this is a good time to consider selling it.
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