The semiconductor shortage has forced the used car market into chaos of late. Some are benefitting and others are losing millions. It’s an uncertain time to be sure, but Honda Civic owners seem to be in the latter camp. Frankly, this should come as no surprise. The Civic has long been a solid buy, but generally because of its excellent reliability. Now, the vehicle’s resale value is in the spotlight, and for good reason.
Honda Civic values are on the rise
According to a recent study by iSeeCars, used Honda Civic models are currently appreciating to over what new models are worth. As mentioned above, the semiconductor shortage is largely to blame. Consumers are turning to the used market in the face of dealership shortages and price hikes. Logic being, why wait an unknown amount of time for a new car when you can go buy a car that’s a year old?
However, it’s not as if a used 2020 Civic is suddenly worth $10,000 more than a brand new one. These appreciation rates are relatively timid for now. However, they could continue to rise if supply chains fail to stabilize. Currently, a newer model used Civic is worth about 2.8% more than a new one. Put into good ol’ U.S. dollars, that’s roughly $727.
It’s rare for a used vehicle to appreciate
That may not seem like much, but it’s hard to stress just how rare the current circumstance is. It’s nearly unheard of in the auto industry. Sure, some enthusiast cars like the Porsche 911 may be worth more than their newer counterparts, but even then it’s a very uncommon occurance. For an economy car to see that kind of trend? Genuinley shocking. However, it’s not just Honda Civic models that are becoming worth more than their new counterparts.
For example, the study lists 16 other models. Among those on the list is the incredibly popular Kia Telluride, as well as the Toyota Tundra and Tacoma. Clearly, supply chain issues are shaking up the used market. It’s simple supply and demand. The demand for new cars is high as economies begin to recover from the last year, but the supply chain has simply not caught up yet.
Should you be selling your car?
Does this mean that you could be laughing all the way to the bank if you own a newer Honda Civic? Sure, but it’s important to keep in mind that most everyone is aware of the current market situation. Given that, you could very well have a hard time selling despite what your Civic is now worth. However, it’s hard to think of a better time to sell. It’s unlikely we’ll see something like this happen again in the near future, so best to take advantage if you can, and sit tight if you can’t.