According to the research firm J.D. Power, the average price paid for a preowned vehicle hit a record of $25,463 in April, about $2,800 higher than in the same month last year. It also was the first time ever that the average used-car price had exceeded $25,000, the firm said. The average price paid for a new model climbed to a near record of $37,572 per vehicle in April, up about 7% from a year earlier, according to J.D. Power.
The increase in used and new car prices is due to a few issues: high demand coming out of the pandemic, low inventory due to factories having been closed down last year and lack of key car parts (specifically microchips). What does this all mean to you? If you are looking to buy a car this year: we recommend you wait! Auto production and supply parts should catch up by year end.
Still need to buy a car in 2021? If you are in a lease, look to buy your leased car out of the lease. The buyout price is in your contract and probably a good deal. Didn’t lease and need to buy? Do your homework. Go to Edmunds.com to see what cars do have deals (rebates and financing).
Want more help? Reach out and we’ll send you E2E’s Car Buying Guide.