PHOENIX — Used car prices across the country have seen a jump in pricing of about 5% year over year, according to the CarGurus Index.
In Phoenix, prices are up by about 4%, or $900, due to a supply shortage and higher demand, according to Julie Blackley of ISeeCars.com, a firm that tracks car pricing.
“That’s because production shortages have kept people from buying new cars," she said. "And as a result, they’re not trading in their used cars. On top of that, the demand for used cars is extremely high, because people are afraid to take public transportation and rideshare services.”
Convertibles made the largest pricing jump nationally with a 20.4% increase, with SUVs and Coupes following at 14.6% and 13.6% respectively, according to the CarGurus index.
Blackley says this isn’t all bad because trade-in prices are also up. In theory, this means more money for a new car.
“So just because used car prices are up right now, that doesn’t mean that there aren’t deals to be had,” she said.
To better learn how things are playing out on the ground, 12 News visited a Carmax in Scottsdale and spoke with General Manager Paul Ostler.
“It’s been a little bit crazy," he said, referencing all the chaos associated with 2020. "But customers still need to come in and still need to buy cars. And we’ve seen a constant flow of traffic coming through here.”
If all of this makes you uneasy, know this: prices are expected to lower in a few months, according to Blackley.
Carfax offers multiple tips for those thinking about trading in their cars to get the maximum value, including getting recall repairs done and timing your trade-in correctly.
To see more tips on trade-ins, you can see the full list here.
