, some pre-owned cars will cost you more than buying new ones. The reasons for this are many, but they mainly revolve around high demand. Below are some examples of used vehicles that could cost more than new ones. But first, let's understand what is happening in the auto industry.
What is happening in the auto industry, and how does it influence car prices?
The auto industry is currently experiencing a chip shortage due to COVID-19. As a result, many auto manufacturers can't produce enough vehicles to meet demand. Because of the limited supply, car buyers turn to the used car market to find the models they want.
With the increased demand for pre-owned cars, it's only natural that prices will go up. With enough demand, they will become more expensive than new cars.
It doesn't matter whether vehicles have high or low mileage—both seem to retail at the same high prices. Not only is the industry experiencing a semiconductor shortage, but there is also a shortage of fuel across the nation. And with fuel shortages, consumers are turning to hybrids, which are in low supply.
The 2020 Toyota RAV4 Hybrid is among vehicles that can cost more used than new. According to Car and Driver, the popular, fuel-efficient SUV had an official retail price of $29,470. This MSRP included the $1,120 delivery fee from the automaker.
However, if you check the used 2020 RAV4 Hybrids listed on
, you won't find anything below the official price. Every pre-owned RAV4 on sale in that list cost more than when it was new. The asking prices start at $31,990 to as high as $35,000. That's even more expensive than the new 2021 model that starts at $30,115, including a delivery fee of $1,215.
According to Car and Driver, the ten most popular used brands have price tags higher than MSRP by $7,557 on average. The Toyota RAV4 Hybrid has the biggest price increase at $10,493, an increase of 37%.
Used Chevy Corvette Stingray is more expensive than a new one by about $20,000
The 2020 Chevrolet Corvette Stingray is the second most expensive used vehicle according to Edmunds used car pricing. The official 2020 Corvette MSRP was $60,995 for the coupe model and $68,495 for the convertible model. The automaker decided to keep the prices for the 2020 and 2021 model year the same.
If you look at the current used Corvettes listed on Edmunds, you will notice that they are more expensive than new. The lowest-priced Corvettes cost $87,500.
This particular example comes with a Performance Exhaust that costs $1,195. Nevertheless, that does not explain the price difference amounting to about $20,000.
The price hike on used cars is a trend that is gaining traction and could last for the next six to nine months. That's because it is not limited to the two vehicles listed above but about sixteen others. Other brand models with this trend include the Kia Telluride, Toyota Tacoma, and GMC Sierra.
Whatever vehicle model you want to buy, ensure you check the price difference. There is no need to buy a used car, where else you could get a new one of the same model at an affordable price. Also, you could save more on insurance for a new car than a used one.
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Carlos has a BA in Media Production and Marketing from Loyola University of Chicago, as well as almost 5 years of content editing and writing experience. He has operated his own freelance creative studio over the past 5 years and aspires to be a Creative Director for an Creative Agency. He is currently located in Chicago, IL and enjoys creating digital art and taking bike rides along the lakefront during his free time!