Report: Some cars cost more used than new amid part shortage

Used car prices rise as microchip shortage slows production of new vehicles

What is driving up used car prices amid pandemic?
What is driving up used car prices amid pandemic?

With companies facing shortages of microchips and parts, new cars are being produced at slower rates than normal. So it’s no surprise that the price of used cars are going up amid the demand.

And according to car search engine iSeeCars, the prices of some used cars have actually risen so high that they’ve become more expensive than their new versions.

“Used car prices have risen overall, and prices have dramatically increased for certain in-demand models that may be harder to find on new car lots,” said iSeeCars executive analyst Karl Brauer. “Dealers may think used car buyers are willing to pay more for the instant gratification of a lightly-used vehicle they can drive right off the lot rather than waiting for a new one.”

More: As chip shortage goes on, cars are scarce and prices are up

The search engine recently released a national report in which they identified 16 vehicles in which their lightly used versions are more expensive than their new versions.

Some of the used vehicles topping the list include the Kia Telluride, costing an average of $3,564 more than a new version; the GMC Sierra 1500, costing an average of $3,466 more than a new version; and the Toyota Tacoma, costing an average of $1,955 more than a new version.

See below a chart of the 16 vehicles and their price differences, as reported by iSeeCars.

In Detroit, the most expensive used car compared to its new version is a lightly used GMC Sierra 1500, which costs 14% more than its new version, or about $7,000. In their analysis, iSeeCars found in other metro areas like Dallas, Houston, and Washington D.C. some used cars currently cost upward of 20% more than their new counterparts.

Click here to see their full report.

At the beginning of June this year, used car prices in the Detroit market were up 20.8% over the last year. Nationally, used car prices have increased by 16.8%, or $3,926, from June 2020 to June 2021, compared to most years when they remain constant.

Read: Data: Used car prices up 20.8% in Detroit


Related: GM lifts forecast as chip shortage eases, stock hits record


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