Used car prices skyrocketed in July due to factors related to the coronavirus pandemic, Edmunds found in a study published Wednesday.
The average used car price for 2017 model year vehicles jumped $708 from June to $21,558 to July. Listing prices typically decrease with depreciation at this time of year, with new models filling dealer lots and lessees returning their cars. Instead of a glut in supply, there is a spike in demand.
With new car inventory constrained by factories shut down by COVID-19, as well as low interest rates and enticing offers on certified used vehicles, shoppers have turned to older cars, perhaps to save money in uncertain economic times.
“It’s a seller’s market right now,” Ivan Drury, Edmunds’ senior manager of insights said in a statement. “Although used vehicles continue to offer significant discounts compared to new, used-car shoppers…