(iSeeCars) – The global microchip shortage continued to impact used car prices in June as restricted new car supply has led to fewer people trading in their used cars. This diminished supply and increased demand caused used car prices to soar.
How much have used car prices gone up? According to iSeeCars.com’s latest analysis of over 1.9 million used car sales in June, used car prices increased 32.7 percent, or $7,583, compared to the same period 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.
Used Car Price Increases by State
Are used car price increases consistent across the country? Here are the average used car price increases by state:
|Used Car Price Increases by State – June 2021|
|Rank||State||Year-Over-Year % Price Change||Year-Over-Year $ Price Change|
iSeeCars’ used car pricing analysis shows consumers may be able to get a better used car deal by crossing state lines.
- Alaska is the state with the greatest used car price increase in 2021 compared to 2020 at 43.0 percent, which amounts to $12,788.
- New Jersey has the smallest used car price increase at 22.3 percent, which amounts to $5,238.
- Of the top 10 states with the lowest price increases, eight are Northeastern states.
- Of the top 10 states with the highest price increases, four are Southeastern states, four are Western states, and two are Southwestern states.
What does this mean for consumers? The rise in used car prices presents lucrative sell or trade-in opportunities for consumers who can get rid of a vehicle or who are willing to trade one in for a lower-demand vehicle, like small SUVs, hatchbacks, or minivans. And for used car shoppers who are willing to travel, you may find a better deal on a used car in a nearby state.
Although the average used car has significantly gone up in price, iSeeCars’s used car price analysis also found some vehicles have lower-than-average increases, making them smart buys for consumers who can’t wait for prices to drop. And while used car prices are expected to stay elevated for the foreseeable future, it remains to be seen if prices are going to keep rising or if they will start to decline toward pre-microchip shortage levels.
More from iSeeCars.com:
- The Fastest-Selling New and Used Cars in July
- Most Popular Used Electric Vehicles by State
- June’s Slowest-Selling Used Car in Each State
iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports. iSeeCars.com has saved users over $305 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.
This article, State By State: Here’s How Much Used Car Prices Went Up in June, originally appeared on iSeeCars.com.