Don’t Waste Your Money: Used Car Prices Update

CHARLOTTE, N.C.– Used car prices are through the roof, with many now selling for 30 percent more than a year ago. The good news, those price hikes are starting to slow. The bad news: Fuel efficient cars are now seeing the biggest price hikes. So let’s start with the good: after last year’s historic run up in used car prices, buyers are finally getting a breather.

New data from finds selling prices down almost 3 percent this year, because some had become more expensive than brand new cars. The site’s Karl Brauer says that’s encouraging.  “We saw a small drop in used car prices from January to February, and then we saw an even larger drop from February to March,” he said.

However, he found smaller cars and hybrids are now seeing bigger price hikes due to high gas prices. A used Hyundai Sonata, Kia Rio and Forte, and Toyota Prius may save money on fuel, but their purchase prices are up 40 percent from a year ago. That can limit your savings. And from the doesn’t that stink file, the reasons used car prices remain high. i-SeeCars says demand is high due to…

-Peak spring buying season.
-Tax refunds arriving the past month.
-the ongoing chip shortage

One bright spot:  If you want a pickup truck, those prices have dropped most, because of those big gas tanks and hundred dollar fillups. Experts say with rising interest rates slowing the market, used car prices should come down further as the year goes on, so you don’t waste your money.