New and Used Car Sales Surge, Even as Prices Reach Record Highs

Americans in the market for a new car are feeling some sticker shock.

New car prices are reaching record levels at the same time sales are surging across the country. The average price for a new car model topped $40,000 in June for the first time, up almost 15 percent from last year. Many are looking to buy new, but dealers are facing a shortage of inventory due a lack of semiconductor chips.

“That has fueled used car prices, because when people can’t get new cars, they buy used cars. So, it’s become very competitive on both markets. Nothing I’ve every seen before in my career,” CarPro Jerry Reynolds said.

Used car prices have risen about 30 percent since May of 2020. The chip shortage is likely to limit supply for the next couple of months.

“If you look at car lots right now, they look empty because every vehicle that comes in is basically presold,” Reynolds said.

Reynolds says this is the one time he'll a potential buyer that getting a car at the MSRP (Manufacturer Suggested Retail Price) is a good value.

Sponsored Content

Sponsored Content