Used Car Price Increases Vary by State
The global microchip shortage has caused used car prices to skyrocket to over 30 percent between March and June of this year. This is the largest jump in used car prices since 1974, when in a period of three months used car prices jumped by 12 percent. According to iSeeCars.com’s June used car pricing analysis of over 1.9 million used car sales in June, the overall average increase of used car prices was 32.7 percent or $7,583 compared to the previous year. This comes after a 26.4 percent year-over-year increase in May and a 16.8 percent year-over-year increase in April. The analysis also found the price can change depending on the state in which you purchase a used vehicle, so those willing to travel may get a better deal on a used vehicle in another state.
The state of Alaska has the greatest year-over-year used car price increase in 2021 at 43 percent, which amounts to a $12,788 increase. New Jersey has the smallest used car price jump, just 22.3 percent or $5,238 year-over year.
Seven other Northeastern states joined New Jersey as among the top 10 states with the lowest price increases. They include New York, where car prices rose 22.5 percent ($5,284): Pennsylvania, 26.6 percent ($6,152); Vermont, 27 percent ($6,143); Rhode Island, 27.3 percent ($5,729), Connecticut 28.3 percent ($6,250), Massachusetts 28.6 percent ($6,535); New Hampshire 28.8 percent ($6,496).
Car price increases over the past 12 months in Midwest states like Iowa, Illinois and Minnesota were in the middle range with car prices in Iowa up 30.8 percent ($7,442); Illinois, up 30.9 percent ($7,404); and Minnesota 31 percent ($7,256).
Joining the Alaska as states with the highest price increases, were Hawaii, Kentucky, Nevada, Louisiana, Oklahoma, Georgie, North Carolina, Texas, Utah.
iSeeCars’s used car price analysis also named vehicles having lower-than-average increases and those with higher price increases, noting vehicles having lower-than-average increases can be smart buys for those consumers who want to purchase a vehicle now, while cars with the higher price increases present a good opportunity for those interested in trading in their used vehicle. The top 5 vehicles with the largest price increases over the past year were the Nissan LEAF, Mercedes-Benz G-Class, Chevrolet Camaro, Lincoln Navigator L, and Ram Pickup 1500. The top 5 cars with the smallest price changes were Mercedes-Benz GLC, Volvo XC90, Audi SQ5, Subaru Crosstrek and Audi Q7.
When in the market for a used car, stop by Carousel Preowned. CarouselPreowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.