RALEIGH, N.C. (WNCN) — It is sticker shock in reverse. The price of used cars is going up not down, and they’re increasing thousands of dollars.
That’s good news if you’re selling, but bad news if you’re buying.
The car you are driving is worth more now than it was four months ago.
Here in the Triangle, used car prices increased 17 percent, that’s more than $3,800 dollars, according to the latest figures from Iseecars.
Why has this happened? A shortage in computer chips for new cars has reduced their production, causing the used car market to escalate.
“I’ve never seen the used car value across the board on almost everything go up and up at this amount before,’ said Karl Brauer, the senior analyst for Iseecars.
Normally, when you drive a new car off the lot, depreciation sets in immediately. This year–it’s different. Your vehicle is holding, or even increasing its value.
That’d a double-edged sword because you get a good price for your used car, but then need a new vehicle and it’ll cost you more.
“What we’re telling people is, if they can hold off buying a new or used car right now, they might be better off,” said Brauer.
Dealers typically make a bigger profit on used cars and with inventories of them low they’re desperate to get more vehicles.
Brauer said there are things you need to know in order to bargain with dealers to make sure you get a better price for your vehicle.
“Make sure you understand how much your vehicle is worth right now,” he said.
“The customers attitude should be, I’ll let you have this for the right money,” said Brauer.
With used car inventories so low, even cars half a decade old have better value right now.
“I’m taking the last 5-7 years, in good working order and in good shape,” said Brauer. “There’s a lot of value in those vehicles right now.
Before making a move to buy or sell your car, do your research. Also, figure out your price points and make sure you’ve got your financing all arranged ahead of time.