Why used car prices have soared 26% during the pandemic

Looking for a used car?

Get ready for some sticker shock. The microchip shortage has slowed production of new vehicles, funneling buyers instead to pre-owned cars, trucks and SUVs, and prices have risen significantly as a result.

The inventory of new vehicles in California is down 75%, according to Jessica Caldwell, Edmunds’ executive director of insights, who recently surveyed dealerships across the state.

That shortage has led to price hikes as dealers are charging a premium for the ones they still have on hand, Kelly Blue Book reports.

In August, the average nationwide price for used vehicles rose 26.2% year-over-year, or $6,454, according to iSeeCars.com. Things were worse in July

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