Fact Check: Are Buy Here Pay Here Used Cars Selling at Higher Prices than New Cars?

The internet is littered with all types of stories surrounding the latest hike in used car prices. And some of those stories are now claiming that used car prices have shot up so high that they are now selling at higher figures than their newer counterparts. This surely calls for a fact check analysis. Used cars, after all, face depreciation and unless something exceptional happens, their prices cannot logically exceed new vehicles.

What is going on then? Is a buy here pay here no credit check in Spartanburg taking advantage of the situation and trying to sell BHPH cars at outrageously inflated rates? Or, are the media houses publishing such stories feeding fake information to used car buyers just to confuse them? Let’s explore the reality of things here. Let’s fact-check the claims.

Semiconductor shortage – the root of all evil

By now, we all know what semiconductors are and what they do in a vehicle. The complex array of sensors that sit inside your used car ultimately feed their data to a semiconductor computer unit that controls the functioning of the vehicle. Modern cars cannot be manufactured without semiconductors. And the pandemic-induced semiconductor shortage has wreaked havoc in the US auto market.

Now, due to the shortage, auto manufacturers had to stop production. New car supply dried up in the dealerships and people held on to their old cars because new vehicles were not available. This constricted used car supply and consequently, their prices rose. If we look at statistics now, average used car prices did touch the $25,000 mark in mid-2021. That is high by used car standards. But average new car prices also rose as it went over $42,000 at the same time. So, the used car market was not the only one to suffer.

Are used car prices higher than new cars?

It all comes down to supply and demand now. Vehicles that are in short supply are selling for high prices, both in the used and new car market, while cars whose manufacture has resumed are slowly moving towards normal prices. In a top buy here pay here in Duncan, SC with a large inventory, you can still find affordable used cars  despite the market condition because depreciation still acts on used cars to bring down their value.

For example, in some used car dealerships, the Kia Telluride was in short supply. And this caused the price of the vehicle to temporarily go above the new Telluride price. But one instant does not mean that the entire market is selling at figures above new car prices. You can always look at a used Ford Explorer or Hyundai Palisade or Honda Pilot that were all selling at reasonable rates.

Unfortunately, the exceptional situation of the Telluride made the news when the cause is a rare case. And that is what people read as used cars costing more than new ones. Hardly any other model showed this trend. Used cars are still way cheaper than new vehicles.

Question what you read or hear

And make informed choices while buying used cars. Yes, used car prices are a bit high now but there are ways to bypass that. Visit a dealership like Uncle Joe’s buy here pay here no credit check in Spartanburg where affordable used vehicles are easily available.

We are a buy here pay here in Spartanburg with $500 down financing offers. We function under the umbrella of Family Auto that has a massive inventory of used cars and trucks. With us, you get vehicles of all prices ranges and we help you with flexible financing deals to fit a great car in your budget. The market may behave erratically but at Uncle Joe’s, you are shielded from its effects.