These 10 Cars Are Actually Worth More Used Than New

What Makes a Car Worth More Used Than New?

Traditionally, economic uncertainty and less travel means less demand for cars. But surprisingly, many vehicles from the last few model years are selling at a premium compared to their original prices. Various factors have pushed used car prices into stratospheric heights, including:

A microchip shortage: COVID-related factory closures reduced the number of microchips available to manufacturers. According to Kelley Blue Book, the average car uses more than 100 such chips.

Supply chain issues: Besides parts shortages, there are fewer delivery drivers. That means it’s harder to ship completed vehicles to dealerships.

Low new vehicle supplies: When the supply of a new model is essentially zero, prices for used models naturally rise.

Low older used car supplies: The Great Recession caused manufacturers to cut back on production between 2009 and 2011. That means that many vehicles that would be affordable and well-maintained aren’t on the market. That’s why more consumers are looking to new or late-model vehicles.

Cash for clunkers succeeded: To jump-start the automotive industry, the government-sponsored Cash for Clunkers program offered owners financial incentive to trade in older vehicles. It worked well enough to eat up a large chunk of the older car supply.

Dealers are paying more for trade-ins: Eager to add stock, dealerships began to pay more for used vehicles. But that meant sales prices also increased. According to Edmunds, the average trade-in value for used vehicles rose to $21,224 in June, an increase of more than 75 percent compared to June 2020.

The end result, according to Consumer Reports? Current used car prices are 42 percent higher than in the pre-pandemic first quarter of 2020.

We used data and listings from Edmunds.com to find 10 popular selling for more than when they were new. Car prices fluctuate with time, local market and trim package, so double-check prices near you before deciding to buy or sell.

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By: Dan Stout
Title: These 10 Cars Are Actually Worth More Used Than New
Sourced From: www.familyhandyman.com/list/these-cars-are-worth-more-used-than-new/
Published Date: Fri, 29 Oct 2021 15:50:10 +0000

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