The used car market has skyrocketed in the past year and it doesn’t look like it’s coming down anytime soon. A recent study from iSeeCars shows that used car prices are up 35% over last year as the microchip shortage continues to impact the car industry. However, despite the crazy price hikes in the recent market, the demand for hybrid, electric, and fuel-efficient cars has also increased.
Hybrid and fuel-efficient cars have undergone the greatest price increases
The folks over at iSeeCars analyzed 1.8 million cars sales and came up with a list of the top 10 used cars with the greatest prices increases. Not too surprisingly, the Hyundai Sonata Hybrid tops the list with a 61.2% price increase year over year in the month of February. While it’s not a hybrid car, the Chevrolet Spark follows the Sonata with a 54.5% increase year over year and the Nissan Leaf follows that car with a 54.3% increase.
The only other electric car on the list is a Tesla Model S, which has seen a 47.4% increase in the past year. According to Karl Brauer, executive analyst for ISeeCars, “Hybrid cars are in demand right now due to soaring gas prices, with the hybrid category as a whole increasing by 47 percent.”
Otherwise, the list is very Kia heavy with the inclusion of the Forte, Rio, and Soul, which all saw around a 50% price increase year over year. Arguably, the most surprising car on the list, however, is the Mercedes-Benz G-Class, which saw a 52.1% increase due to an increase in demand over the past year.
“The wait for a new version of the Mercedes G-Class is over a year, so buyers who want this opulent off-roader are turning to the used car marketplace,” Brauer said.
There is a surge in demand for hybrid and electric cars due to gas prices
It’s no secret that the main culprit for the increase in hybrid and electric cars is mainly due to soaring gas prices. The current national average price for a gallon of gas is $4.24, but you can expect to pay closer to $6 for a gallon in some states like California. As such, it’s no surprise that the data put forth by iSeeCars also shows a marked increase in hybrid and electric car pricing on the used market.
“The increase in gas prices has led to a surge in demand for hybrid and electric vehicles,” noted Brauer. According to the data, prices for hybrid vehicles are up by 47% while the cost of electric cars has risen by 43% in the past year. By comparison, the average price for a non-hybrid or electric vehicle has gone up by 34%.
Is it a good time to buy a hybrid or electric car?
Technically speaking, no. Considering the prices for used cars, in general, are on a steady incline, it’s better to hold off on buying a used hybrid or electric car right now. However, the cost of fuel is on the rise as well, so many Americans may be looking to ditch their gas-guzzling SUVs and trucks for their fuel-sipping counterparts. In that case, buy a hybrid or electric car if it suits your needs better, but be sure to do all your pricing research before doing so.