Used car prices skyrocket as lack of inventory, high demand drive values up

Local News

LAS VEGAS (KLAS) — As the community slowly returns to normal, we are starting to see the ripple effects of the pandemic.

This is impacting businesses across the board, including the used car industry.

“Everything is like three times the price, the inflation is crazy,” said Stasha Lewis.

“Every dealership that we stop by the price is way up high,” added Osvan Obregon. “Like incomparable prices, you cannot afford it.”

Finding an affordable car has now become a challenge for many families.

“It’s frustrating because we’re already in a situation where we’re hanging on by a thread,” Lewis said. “A lot of us are not working or just getting back to work and we really don’t have a means to spend exuberant amounts of money.”

Dealers at “Charlie Cheap Car” say higher prices are due to a combination of issues. A micro-chip shortage is also keeping new cars in factories and causing prices of SUVs to climb drastically.

“The shutdowns, less inventory on the new car lots, less trade-ins for the new car stores, therefore everybody is scrambling,” said Chris Chance of Charlies Cheap Car. “You see some new car dealers around town that look like they’re going out of business just because they have no inventory.”

This is making trade-ins even more valuable.

“What they might have been able to get $3000 for their used-car last year, it’s $4500 now,” Chance said.

Cox Automotive analysts expect these prices to last through summer and possibly into next year.

“We’re just going to have to ride it through and see what happens, but I don’t think it’s anything permanent,” Chance said.

Although it may sound daunting, Chance says there are options.

“We understand the short job time right now, we have lenders that are willing to work with people who are just going back to work after the pandemic,” Chance said.

Cox Automotive says there are 1.4 million fewer cars in inventory this year, compared to the same time last year. That is about a 42% drop.

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