Shoppers look for the best deals possible when car buying. Usually, used vehicles save money upfront, up to $20,000, depending upon the model. But some are better purchased new. And with used car price increases, new vehicles are beginning to look more appealing.
According to iSeeCars, some pre-owned vehicles are actually selling for more than new ones. Astoundingly, more than a dozen cars, SUVs, and trucks are seeing a 0.2% to 8.1% increase over new models.
What’s going on in the auto industry, and how does it affect car sales?
Due to the chip shortage, many automakers aren’t producing as many new cars, so the supply is limited. Because of that, many car buyers are turning to the pre-owned market to find what they’re looking for. But with the increase in used car sales, prices are going way up, making the pre-owned models more expensive than new ones.
It doesn’t seem to matter if the vehicle has low or high mileage — both are going for some pretty high prices right now. In fact, lightly used 2019 to 2020 models have sold for a couple of thousand dollars more than a brand-new car of the same model.
The pandemic caused shortages of not only semiconductor chips but also fuel at gas stations across the nation. Prices at the pump are slowly creeping up and hitting many drivers hard. Some are using rewards programs to save a few dollars when fueling up.
When is buying a new vehicle cheaper than a used model?
New cars typically cost more money because owners can get one with no or low miles on it. However, these days, pre-owned models that are lightly used pop up with higher sticker prices.
For example, the popular Kia Telluride fetches about $44,166 when brand new. These days, a used model brings $47,730, about an 8.1% difference. The new models have been drawing drivers since the Telluride’s 2019 debut, and even the used models boast higher price tags, iSeeCars reports.
Another vehicle, the GMC Sierra 1500, normally sells for about $54,000. But a used model is going for about $3,466 more. The reason? There’s a demand for it, but GM isn’t producing enough new Sierra trucks, so prospective owners are going to the used market to find them instead.
Which used car is the most expensive compared to a new one?
One vehicle on iSeeCars’ list has the biggest difference in price between the new and used models.
It’s the Mercedes-Benz G-Class, commanding $182,631 for the brand-new version. But the used model brings 4.1% more — $7,447 over the new Benz.
This isn’t exactly surprising. That’s because the G-Wagen is one of the fastest-selling cars in America, even more so than the Chevy C8 Corvette. Car shoppers seem to be leaning toward luxury SUVs and sports cars. In fact, they’re almost as popular as station wagons were in the 1970s.
According to The Drive, the price hike on used vehicles could last another six to nine months or more. In the meantime, you might want to consider buying a new car, if one is available, at least until prices return to normal.