If you think food prices are shocking these days, consider this: Used-vehicle prices average more than a third higher now than in January 2021. The average price for a used car hit $27,000 in November and is now already up to $27,500, according to Black Book.
Are car prices going up in 2021?
Overall consumer inflation soared 7% in 2021, the biggest increase in nearly 40 years, the Labor Department said on Wednesday. Used car and truck prices, a main driver of the surge, shot up 37% last year, with the average used vehicle now costing $29,000, according to Edmunds.
Are used car prices going to keep going up?
Used car prices continue to surge. It's a sharp increase of 21.4% from the same time in 2020, when the average cost was $22,679. More than 2 million used-car buyers are purchasing “vastly overpriced used vehicles,” monthly, KPMG said in a December report.Jan 5, 2022
Will auto prices go down in 2021?
According to KPMG's recent study, U.S. dealer inventories had fallen to historic lows by July 2021 and new car prices soared past MSRPs. It's expected that the market will balance out and prices will start to drop when automakers are once again able to produce a normal supply of new cars.
Why is the price of used cars going up?
Used car prices keep going higher. The increases are due to shortages in the market, as auto manufacturers struggle to keep up with demand for new cars. Consumers don't have the selection they're used to, and that's pushing them to take what they can get, regardless of price.Dec 9, 2021
Will used-vehicle prices drop in 2022?
A dip in used-car prices might arrive ahead of the market stabilizing in late 2022, says Automotive News, citing a forecast from consulting firm KPMG. Once that happens, used-vehicle prices could drop 20%-30% prior to supply and demand reaching a balance between October 2022 and 2023, the report says.
Will second hand car prices continue to rise?
Used car prices continue to surge. Here's why — and when they could come back down. It's a sharp increase of 21.4% from the same time in 2020, when the average cost was $22,679. More than 2 million used-car buyers are purchasing “vastly overpriced used vehicles,” monthly, KPMG said in a December report.Jan 5, 2022
Are used car prices going to come down?
After months of price hikes, used cars may finally get less expensive. A report released recently by accounting and consulting firm KPMG suggests prices may slide by as much as 30% by this time next year. KPMG analysts predict demand will taper and supply will increase by as early as October 2022.