Used vehicle sales are surging into spring, while prices are also on the rise.
In a new report, CARFAX noted sales are outpacing last year. The increase in sales comes as retail prices have escalated between $100 and $800 since March.
“We expect this surge in car prices and sales to continue,” said Srinidhi Melkote, Vice President of Business Analytics at CARFAX. “The strong new car demand has pushed new car prices up and supply down, leading some consumers to turn to used cars for a more affordable option. This shift in consumer behavior will drive up used car prices as well, creating a cascading effect across the market.”
The recent sales are expected to impact the already short supply of inventory. CARFAX’s recent Used Car Index noted a $800 rise in minivan prices. SUVs were up $500 and pickup trucks $250.
CARFAX Editor-in-Chief Patrick Olsen noted the market has shifted significantly since January when prices were declining.
“We’re at the front end of a major shift,” Olsen said. “As demand builds and costs continue climbing, buyers should be more strategic to stay ahead in an increasingly competitive market.”
