Last month, the average transaction price of a used vehicle in the USA was record high of $25,829.
Despite expectations, used car prices are still rising in the United States and probably remain high until the crisis of new-vehicle supplies passes. In August 2021, the average transaction price on the secondary car market reached a historically high of $25,829 according to a market researcher Cox Automotive.
This is 24% more than last August and by one-third higher than in August 2019. In July 2021, the figure was $25,500.
Last month, used vehicles under $10,000 had the lowest supply at 30 days. The vehicles with prices between $10,000-25,000 had a supply between 34-38 days. The cars priced at $25,000-$35,000 had a 42-day supply. The highest supply – 48 days – was for used vehicles over $35,000.
As experts have already explained, the reason lies in the lack of offerings in the primary market. The shortage of new vehicle inventory drives up the demand for used vehicles and pushes their prices to heights never seen before. Consumers prefer to hold onto their current vehicle or go to the used market to find the desired vehicle there.
We should thank the coronavirus pandemic for changing the consumer demand structure. This year, automakers have dealt with recurring plant shutdowns due to the global semiconductor chip shortage.
We previously reported that experts did not recommend selling some models today, as their costs would rise. In particular, they talked about the Toyota Land Cruiser and the Volvo 740 Turbo.
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