buying Some used vehicles now costing more than their original sticker price
1965 L78 Corvette: Making The Best Out Of GMs Ridiculous Rules
Chevrolet has always done a good with the Corvette, but in 1965 they almost out-did themselves. Chevrolet really started to ramp up the Corvette's performance after the successes of the 327-cid engine and had it not been for a ridiculous GM rule limiting displacement based on vehicle size, the 1965 Corvettes high-performance option probably would have been a 427-cid engine. © Provided by Motorious However, thanks to the specially tuned 425-horsepower 396-cid big block engine, nobody missed the 427 engine option that didn’t exist for the 1965 Corvette.
DETROIT — When it was new, the window sticker price on a typicalSR double cab pickup was just under $29,000. Two years later, 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, 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, which tracks car and 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.
Who's loving the semiconductor chip shortage? Car dealerships
With inventory so tight, car buyers are ready to pony up and pay sticker price.Reuters reported on the state of the industry on Monday and profiled a couple of dealerships caught in the middle of eager car buyers and too little inventory. It's a simple story of supply and demand: Automakers can't build enough new vehicles, due to chip shortages, and car buyers want them. In turn, many buyers have no problem paying sticker price and foregoing the wheeling and dealing that can knock a couple grand off the MSRP. Dealers get to keep even more cash in their pockets and buyers get their new car. Record profits ensue.
“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(where dealers buy their vehicles) for prices above their original sticker, 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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Many of the models Yurchenko found were high-priced trucks and SUVs or highly sought-after loaded-out vehicles, including the high-performancepickup, the Rubicon SUV and the boxy AMG63 high performance SUV.
But the two-wheel-driveSR is the lowest-priced model of ’s top-selling small pickup. To be sure, higher end versions of the Tacoma also were on the list, but even more mainstream vehicles are selling for more than their original prices. For instance, the and made the list even though both are considered good values compared with more expensive SUVs with three rows of seats.
Yurchenko says the crazy prices are moving further into more ordinary vehicles. “Before we get through this, prices for many mainstream vehicles will get closer to their manufacturer's suggested retail price,” he said.
Well-Known Supercar Dealer CNC Motors Accused of 'Stealing' Cars in Massive Alleged Fraud
Well-Known Supercar Dealer CNC Motors Accused of 'Stealing' Cars in Massive Alleged FraudBut something alarming has been going on at CNC Motors since last fall. Dozens of people have come forward to claim the dealership sold their consigned cars without their knowledge and kept the money. The allegations against CNC's owner and operator Clayton Thom stretch back to October of 2020.
It all started in April and May of last year, when U.S. automakers were forced to close factories for eight weeks to help stop the novel coronavirus from spreading. That cut production, limiting inventory even as demand remained surprisingly strong.
The factories came back faster than expected, and in the meantime, computer chip makers had switched to manufacturing semiconductors for phones, laptops, gaming systems and other consumer electronics. That created a shortage of automotive chips, which is forcing car companies to temporarily close factories, leaving some dealers with few.
The lack of new vehicles and higher prices have sent more people into the used vehicle market, so demand is high there, too. Plus,companies, normally a source of late-model used vehicles, are keeping their cars longer because they can't get new ones, Yurchenko said.
At present, consumers who have to replace a vehicle don't have much choice. “Unfortunately, if you need a vehicle, you'll need to pay the price,” Yurchenko said.
But there are signs that price increases are starting to slow. Usedrose 0.75% last week, the lowest weekly gain in 17 weeks. Trucks and SUV prices grew 0.68%, the lowest weekly gain in 15 weeks, according to Black Book.
The Final 4C: 2020 Alfa Romeo 4C Spider 33 Stradale Tributo
You'll miss it, even if you never really wanted it. The 4C has been on sale since 2014, so it's not like you didn't have a chance to buy one. But you didn't buy one, did you? You can't have one of these final 4C Spider 33 Stradale Tributo models, either. All 33 for North America have already been sold. Considering the 4C's microscopic sales through the years, that these last ones have been snapped up immediately is surprising, too.
Karl Jensvold, owner of PricedRite Auto Sales, a used vehicle dealer in, Nebraska, said he's seeing wholesale prices leveling off, but he doesn't expect them to drop anytime soon. “I think the normal market has reset to a different price point,” he said. “I don't think we'll see the prices (from) before COVID for a while.”
Yurchenko said at some point prices will have to go back to normal and used vehicles willonce again. The timing depends on how long it takes to get more computer chips so automakers can resume normal production, he said. “Once the new inventory levels start increasing, that's where the pressure on the used market will be relieved,” he said.
originally appeared on on Tue, 22 Jun 2021 17:39:00 EDT. Please see our terms for use of feeds.
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