Used car prices have skyrocketed thanks to increased demand and a shortage of new vehicles due to pandemic-related shutdowns.
That trend continues as a new study from iSeeCars reveals the average price of a used vehicle in October increased 9.5% from a year ago. That equates to an increase of $2,193 and that’s a sizable jump for a second-hand car.
According to the study, prices climbed in every segment last month with coupes and convertibles seeing the largest jump. Prices for drop tops shot up 27.2% ($10,429), while coupes climbed 15.9% for an average increase of $5,325. Used trucks were also popular as prices climbed 14.0% for an average increase of $4,413.
Even vehicles that are seen as undesirable climbed as minivan prices were up 2.0% for an average increase of $1,126. Wagon prices were also up 5.9% and this means buyers were shelling out an extra $1,007 compared to a year ago.
The car with the biggest price increase was the BMW 5-Series which costs 25.4% more than a year ago. Last month, they had an average price of $34,157 which was an increase of $6,924.
The 5-Series was followed by the Ram 1500 and Ford Mustang Coupe which were up 21.9% and 20.7%, respectively. That means buyers were shelling out an extra $5,911 for the pickup and $5,060 for the pony car.
While many vehicles are more expensive, it’s not all bad news as iSeeCars Executive Analyst Karl Brauer noted “Interest rates are lower than normal, which can help offset heightened used car prices for anyone who needs a car in the short term.”
There are also bargains to be found, but you need to know where to look. Thankfully, the study points us in the right direction as it reveals Chevrolet Volt prices have fallen 8.4% from last year to result in a saving of $1,512.
Shoppers looking for a crossover can opt for the Ford EcoSport which is 8.0% cheaper than a year ago. This equates to a savings of $1,479 but you’re driving EcoSport and no one wants that.
Savings can also be found on the Chrysler Pacifica, Buick Envision and Cadillac XT5. Other vehicles that are more affordable than a year ago are the Dodge Dart, Nissan Rogue Sport, Porsche Macan, Kia Sedona and Toyota Prius.
That being said, the study only focused on late model used cars from the 2015-2019 model years. Of course, it’s always wise to shop around and look for the best vehicle at the best price.