According to Edmunds.com, the average price for an average used car in the U.S. is $29,011. That is a whopping 39% more than a year ago.
You may be asking yourself, why are used cars so expensive nowadays? Consumer inflation has skyrocketed 6.8% in the past few months - the biggest jump in 40 years.
When the COVID-19 pandemic began and auto plants stopped production in hopes of stopping the spread of COVID-19, new car sales dropped and with that, people stopped selling their cars. Once auto plants restarted production on cars, they faced another issue - chip makers were not able to deliver important chips in time, prolonging the process. Not only did the car chip shortage slow down the process of making cars, it also made new vehicle prices higher.
Since the beginning of the pandemic, the prices of used cars increased 42%. A HUGE increase.
Fox11 LA delved into the issue and gave us a closer look at why used car prices are so high. Click here