Used car prices in Columbia are soaring. Here’s by how much
Used car prices in Columbia rose more than 35% in February over last year, a new report shows.
According to iSeeCars.com, Columbia used car prices jumped $8,823.87 in February one the same month a year ago. The spike is part of an ongoing nationwide trend of rising used car prices since last year, caused by high demand and low inventory.
After analyzing 1.8 million used car sales in February, iSeeCars determined prices were up 35% nationwide overall in February.
Edmunds.com has also reported on the continued rising demand for used cars, noting in January that the average price was around $29,000, up 37% in the last year.
“After coming down slightly in February, used car prices remain elevated due to lingering supply constraints and they are expected to rise again due to geopolitical factors as Russia is a key supplier of materials used to make car parts and microchips,” iSeeCars Executive Analyst Karl Brauer said in a press release. “We are also seeing a significant increase in demand for used hybrid and electric vehicles as a result of high gas prices, with the cost of hybrids increasing by 46.9% and electrics increasing by 43% compared to last year.”
The prices of used cars are at record highs because demand has been exceeding supply. Microchip suppliers paused production in the beginning of the COVID-19 pandemic to protect workers, then the economic slowdown caused automakers to order less computer chips. When the economy began to recover, there was an increased demand for personal electronic devices, which led to microchip factories becoming overwhelmed.
Automakers had to stop new vehicle production because of the supply shortage and so many consumers, faced with few new cars on dealership lots, turned their attention to used cars. The heightened demand was coupled with reduced supply at dealerships as fewer people traded in their old cars during the economic downturn, iSeeCars says.
According to Edmunds.com, there are a few general tips to follow to get the best deal on a car.
- Being flexible. Consider alternative vehicle types, brands and colors and be willing to compromise on features.
- Expanding your search. Widen your geographic search for more selection if you’re in a market with lower inventory. But before you hop on a plane, make sure to lock down as much of the deal as possible.
- Reevaluating before jumping straight into another lease. Lease incentives are becoming increasingly difficult to find, but APR specials are still available.
- Negotiating for more value. If you’re facing markups above MSRP, try to negotiate the adjustment to include add-ons such as warranties, service contracts, protection packages or dealer-installed accessories.
- Leveraging your greatest asset: your current vehicle. Your car’s value is one of your biggest negotiating tools in offsetting the purchase price of your next vehicle. Use it wisely and shop around for appraisals.
- Acting quickly. If you find a vehicle that meets all your needs, don’t wait to immediately reach out and communicate your interest to your local dealer to maximize your chances of driving it home.
Here are the cars with the greatest year-over-year price increases in Columbia according to iSeeCars:
- Honda Civic — $8,365 increase
- Kia Sorento — $8,037 increase
- Toyota Camry — $8,648
- Chevrolet Equinox — $7,467 increase
- Ford Escape — $7,305 increase
This story was originally published March 24, 2022 at 6:00 AM.
