Soaring

A supply crunch has sent used-car prices soaring. These 16 models are now worth more used than new.

A gray 2020 Kia Telluride on a green lawn.

A new Kia Telluride costs close to $4,000 less than a used one – if you can find one. Kristen Lee/Business Insider

  • Car dealers are facing a supply crunch that’s sent used-car prices through the roof.

  • Some 2019 and 2020 cars are now cheaper to buy new, an analysis from iSeeCars found.

  • The Kia Telluride costs $3,564 more to buy used than new, the analysis found.

  • See more stories on Insider’s business page.

Skipping a brand-new car for one that’s lightly used has always been the most wallet-friendly way to buy a car. Not anymore.

In the strange and sometimes utterly backward-seeming times we’re living in, it’s actually cheaper to buy some cars new rather than secondhand. A recent analysis from the automotive-research site iSeeCars.com identified 16 such vehicles, some of which cost thousands more to buy used.

The pandemic has led to a diminished supply of cars and

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‘Perfect storm’ of chip shortage, soaring demand pushes used car prices to new highs

Canadian car shoppers hoping to buy a used vehicle ahead of a summer road trip can expect two things: Fewer options and higher prices.



a close up of a car


© Provided by The Canadian Press


A global shortage of semiconductors, a small but crucial computer chip used in new vehicles, has curtailed production for months.

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The situation has sent shock waves through the North American auto industry, causing lengthy wait times for new vehicles and driving up the demand and cost of used vehicles.

The problem is expected to worsen in Canada in the coming weeks as the economy reopens and pent up demand from repeated lockdowns hits the market, experts say. 

“The impact of the shortage has been slightly muted in Canada so far this year, mainly due to COVID-19 lockdown restrictions,” said James Hancock, director of business development for Canadian Black Book, an automotive data analytics company.

New car inventory is

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Car prices are soaring, and they’re not going to stop

Car dealer lots have only a fraction of the vehicles — both new and used — that they typically have. That’s helping send prices to record levels and lifting the nation’s overall inflation rate.

Car dealer lots have only a fraction of the vehicles — both new and used — that they typically have. That’s helping send prices to record levels and lifting the nation’s overall inflation rate.

And the price increases aren’t over yet.

The average new car price hit a record $38,255 in May, according to JD Power, up 12% from the same period a year ago.

About two-thirds of car buyers paid within 5% of the sticker price in May, with some even paying above sticker.

Wholesale prices for used cars sold at auction are up 39% since the start of this year, according to other data from JD Power. Retail used car prices are

Read More

Car prices are soaring, and they’re not going to stop

Car dealer lots have only a fraction of the vehicles — both new and used — that they typically have. That’s helping send prices to record levels and lifting the nation’s overall inflation rate.

And the price increases aren’t over yet.

The average new car price hit a record $38,255 in May, according to JD Power, up 12% from the same period a year ago.

About two-thirds of car buyers paid within 5% of the sticker price in May, with some even paying above sticker.

Wholesale prices for used cars sold at auction are up 39% since the start of this year, according to other data from JD Power. Retail used car prices are up a more modest 20% in the same period. That’s also a significant jump for this time of year, and the higher wholesale prices are pointing to bigger increases on the way.

“That puts

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