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Used car prices up 47% from 2 years ago

The average list price for a used car is $28,000.

INDIANAPOLIS — Everything right now is costing consumers an arm and a leg, and used cars are no exception.

Emilie Voss with Carfax said we've never seen prices this high. In two years, the average used car price has jumped 47%.

"Pre-pandemic, the average list price from a dealer on a used car was $19,000. In January of 2022, we're seeing the average list price at $28,000," Voss said.

That's because the industry can't seem to catch up on new vehicle production.

"People who, maybe, would traditionally have bought new are now buying used, and there's just no inventory. Dealers can't stock the lot," Voss said.

RELATED: Some used cars selling for more than their original sticker price

If you think you might need a vehicle soon, Voss said to broaden your criteria. 

Have a few models in mind and as for color, be prepared to put that on the chopping block. 

"Just say, 'I know I want a late model year, SUV with a third row.' You're going to have a lot more options to choose from and maybe feel a lot more confident in your negotiations," Voss said. 

Next, shop from dealers far and wide if you want something specific. 

"Look 100, 200 miles away. We live in an age now where you can shop at car dealers all over this country online," Voss said.

If budget is important, you might need to be OK with some prior minor to medium fixes, which is why Carfax now details accident severity.

"You can see it was a minor accident, (maybe) it was the front left bumper. So then when you take it for the independent inspection, which we also recommend, have a trained mechanic look at it. They can make sure the repairs were made properly," Voss said. 

An inspection may cost $100 or so, but it's worth not being stuck with a bigger bill a month from now.

MORE: Buying a car? Here's how you can save money

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