REPORT: New Vehicle Price Average Swells to $46,000 as Used Vehicle Prices Climb 39% in 12 Months
By Fox Business // January 3, 2022
Computer Chip shortages and staggering inflation to blame, experts say
ABOVE VIDEO: Patrick De Haan, head of petroleum analysis at GasBuddy, predicts the national average for gasoline could hit $4 a gallon in the spring before peaking in the summer.
(FOX BUSINESS) – A couple of months ago, a woman paid a visit to Jeff Schrier’s used car lot in Omaha, Nebraska. She was on a tight budget, she said, and was desperate for a vehicle to commute to work.
She was shown three cars priced at her limit, roughly $7,500. Schrier said the woman was stunned.
“‘That’s what I get for $7,500?‘” he recalled her saying. The vehicles had far more age or mileage on them than she had expected for something to replace a car that had been totaled in a crash.
The woman eventually settled on a 2013 Toyota Scion with a whopping 160,000 miles on it. Schrier isn’t sure he made any profit on the deal. “We just helped her out,” he said.
As prices for used vehicles blow past any seemingly rational level, it is the kind of scenario playing out at many auto dealerships across the country. Prices have soared so high, so fast, that buyers are being increasingly priced out of the market.
Consider that the average price of a used vehicle in the United States in November, according to Edmunds.com, was $29,011 – a dizzying 39% more than just 12 months earlier. And for the first time that anyone can recall, more than half of America’s households have less income than is considered necessary to buy the average-priced used vehicle.
CLICK HERE TO READ FULL ARTICLE ON FOX BUSINESS