- Some Honda Civic models are worth more used than new
- Buying a 2022 Civic could save you from used auto market price gouging
- Dealer markups are present, but not prevalent with the newest Honda
The used Honda Civic is a faithful thing. No, we’re not just talking about reliability. When faced with a totaled car, I was once told “you’ll at least be able to go get a Civic with the insurance money.” The Honda sedan (or hatch) is always there for you when you need transportation, cheap or otherwise. Now, values are climbing, and with more recent used Civics, they may even be worth more than new ones.
Why are dealerships marking up new cars?
The problem here is twofold, in a manner of speaking. The chip shortage and the resulting strains on the supply chain are part of it, of course. It’s hard to make cars right now, so just about everyone that can’t swing a brand new ride is going used for the foreseeable future. That, obviously, creates more competition in the used car market, driving prices up.
Then, there’s dealer markups. Now, it’s not fair to take the “greedy Moneybags Dealer” angle most of the time, but sometimes it is. I’ve seen $20K markups dealer markups on Honda Civic Type Rs in recent months. However, a dealership is also a business, and one that’s having a hard time right now. Their staff needs to be paid, and that means selling cars, but because there aren’t a lot of new cars around, dealers need to offset their costs. Hence, dealer markups.
How much is a used Honda Civic?
A study by iSeeCars outlines the growing upward trend in both used Civic prices. People are willing to pay good money for a good, reliable Honda Civic. To put it in numbers, iSeeCars’ study shows that prices on used hatchback Civics have increased by around 9.8%, or an average of $2,646 per transaction. That means that in some instances, a used Civic hatchback can be worth $29,735 to the 2022 Civic hatch’s $27,089 MSRP. Thankfully, the sedan isn’t taking near as much of a hit.
The most popular Honda sedan rises in price by only 5.3%. That’s a cash increase of around $1,275 per transaction. However, that can still result in more recent models, like the 2019 Honda Civic Si, selling for more than new ones, which start at an MSRP of $21,900. At least, before any dealer markups. So, supposing you can find one, buying a 2022 car may just be worth it over the used one you saw on the dealer lot yesterday.
The 2022 Honda Civic promises to be reliable
Plus, the 2022 Honda will surely come with a warranty in addition to a stellar reputation for reliability shared by all Civics. As ever, the best strategy here is twofold: either do your research and wait for that car that’s as close to an un-inflated market value as possible or simply buy a new one, sans dealer markup.