Prices on the used car market are still insane. According to an analysis from iSeeCars based on 1.8 million used car sales in March, used cars cost 30.4 percent more than the same month last year. However, this is slightly down compared to February, when the gap was even bigger at 35 percent.
Many factors affect the prices of second-hand cars. The production disruptions are causing delays in new car deliveries and this means there’s a growing demand for used cars. However, there are fewer available used cars than before, which means the demand is up but the availability is down. This creates a natural jump in prices.
“We are also seeing a significant increase in demand for used hybrid and electric vehicles as a result of high gas prices, with the cost of hybrids increasing by 40.5 percent and electric cars increasing by 36.3 percent compared to last year,” adds iSeeCars executive analyst Karl Brauer.
Logically, some cars saw greater price increases last month than others. The Hyundai Sonata Hybrid had the greatest price increase year-over-year with its price going up by almost 64 percent last month compared to March 2021. The Sonata Hybrid retains its first place from last month. Another Korean model, the affordable Kia Rio, came second with a 49.4 percent increase in price YoY. The Nissan Leaf was third with a 49.2 percent increase.
|Top 10 cars with the greatest price increases (YoY)|
|Rank||Used Vehicle||Average Used Car Price (March 2022)||$ Price Change from March 2021||% Price Change from March 2021|
|1||Hyundai Sonata Hybrid||$25,620||$9,991||63.9%|
|9||Tesla Model S||$75,475||$22,612||42.8%|
|Average Across All Cars||$34,429||$8,032||30.4%|
As you can see from the table above, the list of Top 10 cars with the greatest price increase consists of five small gas cars, two hybrids, two electric vehicles, and the Mercedes-Benz G-Class. With the current fuel prices, it shouldn’t come as a surprise that many people are going for more efficient and smaller combustion models, which drives their prices up.