This Nov. 15, 2020 photo shows a long row of unsold used Highlander sports-utility vehicles sits at a Toyota dealership in Englewood, Colo. In 2021, high demand and low supply have driven up used vehicle prices so much that many are now selling for more than their original sticker price when they were new.
This Jan. 24, 2021 photo shows a long line of used Challengers at a Dodge dealership in Littleton, Colo. In 2021, high demand and low supply have driven up used vehicle prices so much that many are now selling for more than their original sticker price when they were new.
This Nov. 15, 2020 photo shows a long row of unsold used vehicles at a Chrysler/Jeep dealership in Englewood, Colo. In 2021, high demand and low supply have driven up used vehicle prices so much that many are now selling for more than their original sticker price when they were new.
DETROIT (AP) — When it was new, the window sticker price on a typical 2019 Toyota Tacoma SR double cab pickup was just under $29,000. Two years later, dealers are paying almost $1,000 more than that to buy the same vehicle, even though it’s used.
Then they’re selling it to consumers for more than $33,000.
Welcome to the wacky world of U.S. car and truck sales, where the pandemic and a global shortage of computer chips have pushed prices to record levels.
In the past year, used vehicle prices on average have climbed 30%, according to Black Book, which tracks car and truck data. That’s created many crazy situations where high-demand vehicles are selling for more than they did when they were new, said Alex Yurchenko, the company’s senior vice president of data science.
“The market is very strange right now,” said Yurchenko. “Dealers need the inventory, so they are paying lots of money for their vehicles on the wholesale market.”
Yurchenko has found 73 models of 1- to 3-year-old vehicles being sold at auctions (where dealers buy their vehicles) for prices above their original sticker, which is called the manufacturer’s suggested retail price.
Used vehicle price increases accounted for one-third of the large rise in inflation last month, according to the Labor Department. Prices shot up a record 10% in April and another 7.3% in May, as inflation spiked 5%, the biggest 12-month increase since 2008. The average used vehicle cost $26,457 this month, according to Edmunds.com.
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