Used car prices have increased by almost 40% in one year. The main reason is because there is a shortage of new cars being manufactured due to supply chain issues. This supply chain shortage, particular the microchip shortages needed for new cars, has forced more buyers to purchase used cars instead of new cars, causing scarcity in the used car market. Supply shortages plus increasing demand is what drives prices up, no matter what the industry.

Some makes and models have increased even more than 40% in one year. For example, according to Edmund’s data, a three-year-old Dodge Grand Caravan is worth more than $25,000 today, which has increased by 69% in just one year. A Nissan Versa of the same age cost $9,842 last January but has since increased by 66% today to an average of $16,366.

The average five-year-old vehicle will average cost today is $24,000, which has increased more than $6,000 from a year ago. Never before have we seen cars ‘appreciate’ as opposed to ‘depreciating’ with age. This is what makes used car valuation so unusual in today’s marketplace.

Although new car values have been steadily increasing as well, new car values have increased by an average of 14% in one year, which is far less than that of used cars. There is a common understanding that new cars lose a quarter of their value as soon as you drive them off the lot, and this saying is relatively accurate. Research indicates that the average car depreciates by 23.5% during the first year of ownership. The depreciation factor combined with the increasing demand for cars in general, accounts for why used cars have seen the greatest increase in price and valuation.

Financial experts and economists predict that auto prices won’t be coming down anytime soon.

Moreover, with new-car prices reaching all-time highs, consumers are holding onto their used vehicles longer instead of trading them in, which further adds to the demand in the used car marketplace. For the same reason, people who normally buy new cars once their lease expires are opting to buy their leased vehicles at the end of the term, rather than swap them in for a new lease. This is most likely due to either a lack of available used cars in the marketplace or buying a different used or new car has priced them out of the marketplace.

With more people choosing to hold onto their used cars, Google has seen an increase in search terms for DIY car repairs. With economic issues, rising inflation costs, and the high cost of relying on service departments for routine car repairs, more people are learning how to change their own tires, car batteries, and do their own oil changes.
To meet increasing demands in this changing economy, websites like www.UpliftCarsAndTrucks.com offer up-to-date listings on used and new car sale listings by connecting consumers to eBay motors and other classified ad sites, as well as connect all their existing customers or used car owners to DIY auto repair parts and services. To learn more, please visit www.UpliftCarsAndTrucks.comand bookmark their website to find the best savings on your next new or used car purchase and on DIY home car repair.