For those who had been hoping to seek out some financial savings through the COVID-19 pandemic, you will not discover it within the used automotive market, sadly.
Then once more, you may be capable of make a couple of bucks should you’re prepared to depart with a car as a result of used automotive costs are spiking as a result of an uncommon confluence of things through the pandemic.
The explanations? Amongst them are that persons are flooding into the used automotive market, on the lookout for offers amid excessive costs for brand spanking new automobiles, low rates of interest and a scarcity of new-vehicle stock, in line with car-research website Edmunds.
The typical itemizing value of used automobiles was $21,558 in July, up $708 from June.
“That is an unprecedented historic shift within the used car market, the place itemizing costs sometimes lower throughout this time interval as a result of depreciation,” Edmunds reported Wednesday.
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Any hope the rental automotive firm Hertz’s Chapter 11 chapter submitting earlier this 12 months would trigger in a drop in used automotive costs has diminished because of the overwhelming affect of COVID-19 available on the market.
Ivan Drury, Edmunds’ senior supervisor of insights, stated in a press release that there is “considerably elevated demand” for used automobiles, partially as a result of rock-bottom rates of interest.
Additionally, automakers had been pressured to close down crops for about two months within the spring as a result of work restrictions due to COVID-19. That led to a decline in new-vehicle stock and a delay in 2021 fashions.
“It’s a vendor’s market proper now. Though used automobiles proceed to supply vital reductions in comparison with new, used-car customers will discover themselves within the uncommon place the place they won’t have as a lot negotiation energy as a result of demand is so excessive and sellers can be much less inclined to be versatile,” Drury stated.
He suggested patrons to be ready to behave rapidly in the event that they see a used automotive they need.
The worth will increase are particularly sharp for bigger automobiles, that are in excessive demand. Used massive pickups, for instance, skilled a $2,301 improve in common record value in July, hitting $33,264, in line with Edmunds. Midsize vans recorded a $1,812 improve to $29,457.
“Used-car costs are nonetheless at record-breaking ranges, and in some segments, there are fashions coming near new-car costs, together with sports activities automobiles,” car-valuation service Kelley Blue Ebook reported Monday.
That stated, new-car costs nonetheless carry a premium for essentially the most half.
The typical value of a brand new car offered in July was $38,378, up 2% from a 12 months earlier however down 1.2% from June, in line with Kelley Blue Ebook.
Common July used automotive record costs, by car section, ranked by value change (with the rise from June in parentheses):
- Giant pickup: $33,264 (up $2,301)
- Midsize truck: $29,457 (up $1,812)
- Sports activities automotive: $24,867 (up $1,369)
- Giant SUV: $37,942 (up $1,094)
- Giant automotive: $22,446 (up $1,060)
- Subcompact automotive: $13,214 (up $841)
- Midsize SUV: $24,766 (up $803)
- Midsize automotive: $16,709 (up $520)
- Subcompact SUV: $17,169 (up $516)
- Compact SUV: $18,949 (up $512)
- Heavy-duty pickup: $43,044 (up $491)
- Compact automotive: $14,859 (up $427)
- Minivan: $21,727 (up $415)
Comply with USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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