If you thought the coronavirus pandemic's effect on the auto industry was in the past, think again. New data from iSeeCars shows the pandemic continues to crash over new and used car prices, and essentially, the best deals for any shopper are well behind us -- especially if you're shopping for a new car.
But for those moving to the used car market, it's a tough pill to swallow, too. Data shows used car prices are up a whopping 9.5% from this time last year. In dollars, the percentage increase translates to an average price hike of $2,193. The narrative remains the same, however. As more buyers can't find a new car they want due to inventory constraints, they're looking at a comparable used car. Supply and demand shows as more buyers want a used car, prices increase.
There are two segments where used car prices are really punching at buyers' wallets more: pickup trucks and, surprisingly, convertibles. For those seeking a drop-top automobile in the used market, prices are up 27% from this time last year. Expect to pay over $10,000 more on average for a used convertible compared to this time last year. Yikes. Meanwhile, pickups cost, on average, 14% more, or $4,400.
As an example, the data shows a used Ram 1500 pickup right now on average costs $32,841, an increase of $5,911 from this time last year. And a used Ford Mustang convertible costs $25,435 on average today. That's up $3,997 from last year. The car that saw the highest price increase year-over-year is actually the BMW 5 Series, which on average rings in at $34,157, up nearly $7,000.
There's another side to high used car prices, though. It also means those trading in or selling a car are receiving far greater values as demand pushes prices higher. That bodes will for those applying the credit toward a new car, potentially, or perhaps it washes out when purchasing a used car noting higher prices across the board.
Used vehicles with the greatest price increases
|Rank||Used vehicle||Average price (Oct. 2020)||Price change from Oct. 2019||YoY increase|
|1||BMW 5 Series||$34,157||$6,924||25.40%|
|3||Ford Mustang coupe||$29,540||$5,060||20.70%|
|5||GMC Sierra 1500||$38,750||$6,380||19.70%|
|6||Ford Mustang convertible||$25,435||$3,997||18.60%|
|10||Chevrolet Silverado 1500||$34,245||$4,876||16.60%|