Old cars ain’t what they used to be.
We’ve been telling you for months about the multi-faceted impact of semiconductor chip shortages and supply chain disruptions and cargo ships anchored offshore, and nothing has changed except the price of old cars. Absent new ones, they’re hot.
“Typically one to five year old used cars, when you check on a year by year basis, prices move by less than a percentage point overall. In the past year, just in the past three months, we’ve seen these prices go up 25 to 35%,” says Karl Brauer, Executive Analyst at ISeeCars.com, the largest online site for used car sales. Where in the past owners would replace rather than repair an aging car, repairs are preferable today, if your mechanic isn’t impacted by the labor shortage.
Texas is not too far off the national average of a 26.2% increase year over year, which amounts to $6,454 per vehicle. In Texas we’re at 26.5%, or $6,725. For the hottest properties, that is significant coin. “A BMW X-4, that price change from a year ago is up 57%, or $17,000. Toyota Sequoia is not far behind at about a 50% and $18,000 up in price from a year ago,” Brauer tells KTRH News. ISeeCars.com puts Alaska at the top of the list for used car price increase, with Texas ranked 6th. SUV’s are the top pick nationally, and in Texas, we like our highly practical SUV’s and our trucks. Other cities are facing higher hikes, but not many. As a matter of fact Houston is third in the nation in a ranking of who pays the most for used vehicles, just behind #1 West Palm Beach and #2 Miami. Dallas is 6th, San Antonio 7th , and Austin 8th.
photo: Getty Images