INDIANAPOLIS — We all know that buying a used car typically saves us money.
Now, the gap between new and used car prices is hitting a record, according to Edmunds.
On average, a new car sold for $47,542. A used car? An average of $27,177.
That is more than a $20,000 difference between the two.
Edmunds analyst Ivan Drury said the average gap between the two options is typically around $15,000, give or take a few thousand dollars.
If the average used car price sounds high at $27,177, you are right.
Used prices are up more than 30% from 2019.
So why are prices high?
Supply and demand issues dating back to COVID-19.
"If you have stayed out of the car market for five or six years, and you try to come back, you'll be flabbergasted, right? It's going to take, like, a complete paradigm shift to understand what all has happened. Interest rates, incentives, these things are completely different. Used car supply, like trying to find a nice two- or three-year-old car is so much more difficult today than it ever has been now," Drury said.
If you are going the used route, be sure to get the car checked out by a mechanic if it is not certified.
Financing through your bank or credit union can also be a savings during a time of high interest rates.
For new cars, consider shopping at the end of the year.
"It is always the absolute busiest time of the year. You go between Christmas and New Year, you can either, you know, be doing something crazy because you're going to be doing with a lot of other people fighting over the same kinds of deals, or you might score," Drury said.
He added that incentives are set at the beginning of the month, so start researching your options then.