We keep saying it – 2021 is a lesson in supply and demand – and it still applies.
Demand for new cars exceeds supply due to the critical mass of supply chain issues and the ongoing chip shortage, and the limitations on new cars is pushing up the demand for used cars, which is a finite number, putting constant pressure on prices.
They’re still going up.
Because of the delay in delivery of a new car and the immediacy of buying a used car, some people are willing to pay more for a used car in good shape than they would for the car new.
The Mannheim Index, which tracks these kinds of things, adds another 5% to the price of a used car in the first two weeks of November compared to October. The overall index is a hair’s breath away from 45% over the cost this time last year.
Rental car companies are now buying used cars to replenish inventories. Ford announced this week that supply chain and chip shortages will continue into next year.
Supply and demand is escalating the value of the vehicle that you’re driving.
photo: Getty Images