Why do so many cars cost more used than new?
Driving is, for many reasons, becoming an expensive and difficult endeavor – gas prices are rising, car prices are rising and, even for those willing to shell out those big bucks, buying one is often far from easy. easy.
The escalation of the current crisis is both immediate and has been in the making for years. A shortage of semiconductors, or the microchip used in cars for everything from light sensors to displays, has placed serious limits on the amount and types of cars currently available.
Why is driving so expensive?
When the COVID-19 epidemic hit the United States, the situation was only exacerbated by supply chain disruptions – many parts needed to build cars were not shipped to time or even at all and as some have reported people were placed on waiting lists of several months for popular models.
Drivers suffered another blow in February as the world was forced to respond to Russia’s invasion of Ukraine With much of the world dependent on Russian oil, boycotts and sanctions skyrocketed the price of gasoline. It was, according to AAA data$4.242 a gallon on Tuesday.
So it’s no surprise that driving is starting to dig a bigger and bigger hole in the pockets of many people. But while gas is a constant concern for anyone driving, a big expense is also buying that first car.
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While buying used was once an option for those looking to save money, used cars in particular are seeing a dramatic price spike – the average price of a nine-year-old car is now up 43% since last year.
Which cars cost more used than new?
And since some car models are now simply unavailable without a months-long waiting list, many little-used versions are now much more valuable than older ones. Last month, vehicle search engine iSeeCars make a list of 15 cars that cost more used than new.
The most striking difference was the Mercedes-Benz G-Class which starts at $131,750 for a new model. Lightly used, the same car cost 35.6%, or $62,705 more, in January. At $63,000, the Chevrolet Corvette costs 20.2 percent or $16,645 more used. A used version of Tesla’s Model 3 also fetched 17.8%, or $8,300, above the market price of $46,990.
Prices are however so drastic for a few select and in-demand models. Among the cars analyzed by iSeeCars, an average used model costs only 1.3% or $553 more than the new version.
“After falling slightly in February, used car prices remain high due to ongoing supply constraints, and are expected to rise again due to geopolitical factors, as Russia is a key supplier of materials used to manufacture Auto Parts & Microchips, iSeeCars Executive Analyst Karl Brauer noted in a report.
SEE THE FULL LIST OF 15 CARS THAT COST MORE USED THAN NEW HERE.