JONESBOROUGH, Tenn. (WJHL) — Used car prices are on the rise and car dealers said it’s due to a variety of reasons.
“People are going back to work, businesses are hiring,” TennMotors Co-Owner Steve Ivey said. “The COVID restrictions are getting released around the country.”
Ivey also pointed to the influx of government money including stimulus checks and tax refunds.
That demand paired with a shortage of new cars is causing both new and used car prices to rise.
“There is a current shortage of computer chips, all new vehicles have a ton of computer chips in them. It is deterring the new car manufacturers from replacing their needed new car inventory,” said Ivey.
That’s causing more people to turn to used cars.
Ivey monitors used car prices using programs like V-Auto and Kelly Blue Book. He said he’s seeing cars being listed and sold for thousands of dollars more than their actual value due to demand.
Typically, cars lose value after you buy one.
“Quite literally cars are appreciating. You could buy a car this week and in the books it would be worth more the next week,” Ivey explained.
Ivey expects this trend to last at least through the summer, until the chip shortage can be met.
He does have advice if you absolutely must buy a used car right now.
“Go have it independently inspected. Spend $75, have the car checked. Because you’re going to be paying a top dollar value for it, so you want to get your money’s worth out of it,” Ivey said.