With a bad mixture between the global chip shortage, the pandemic, and (to a certain extent) Brexit, it’s not really surprising that used car prices in the United States (and all around the world) are skyrocketing. According to different sources, during the last 12 to 18 months, the second-hand car prices in the country have jumped between 15 and 40 percent, leading to unusual scenarios where a used car can cost more than when it was sold new by the dealer. Yes, you read that right.
A new comprehensive report by The Associated Press explains the situation thanks to input by Alex Yurchenko, senior vice president of data science at Black Book, an automotive industry data analyzing company. He told the publication that a good number of one- to three-year-old vehicles are currently offered for more than their original price stickers.
In short, the situation looks like that. A dealer wants to purchase and sell, say, a 2019 Toyota Tacoma SR double cab but they have to pay at least $1,000 more than its sticker price of approximately $29,000. Once the seller gets their hand on the truck, they offer it to customers for approximately $33,000.
“The market is very strange right now,” Yurchenko told AP. “Dealers need the inventory, so they are paying lots of money for their vehicles on the wholesale market. Before we get through this, prices for many mainstream vehicles will get closer to their manufacturer’s suggested retail price.”
save over $3,400 on average off MSRP* on a new Ford F-150
Black Book was able to find no fewer than 73 used models that were sold at dealer auctions for more than their original prices. The agency’s analysis shows that most of these vehicles were trucks and SUVs, including fully-loaded versions of the Ford F-150 Raptor, Jeep Wrangler Unlimited Rubicon, and Mercedes-AMG G63. Surprisingly, even some more mainstream vehicles were also sold for more than their original MSRPs.