Car prices have skyrocketed because of both supply and demand. People who wanted to buy cars essentially were locked out of dealers for months because of the COVID-19 pandemic. Just as buying picked up, the car manufacturing supply chains were hit by a shortage of the semiconductor chips that run their electronic systems. According to The Wall Street Journal, this shortage could last many months. Some of the world’s largest car companies actually have had to shutter assembly lines temporarily.
The imbalance of supply and demand has driven a sharp increase in both new and used car prices. One of the salient points of a new iSeeCars report titled “The Used Cars With the Largest and Smallest Price Increases Amid the Microchip Shortage” is that people who own used cars that have gained in value may find this a good time to trade them in. That is, of course, if there is a supply of the new car models they want to buy.
In the August study, iSeeCars looked at 1.9 million used cars. The average used car price rose 26.2% from August 2020. That translates into $6,454. iSeeCars analyst Karl Brauer commented: “As the microchip shortage-related plant shutdowns continue, and with the aftermath of Hurricane Ida expected to further elevate prices, there appears to be no relief in sight for used car shoppers.”
The used car that gained the most in value in August was the Mitsubishi Mirage, which was up 49.9% to $13,398. Mitsubishi markets it as a small “city-friendly” car. It is easy to see the logic. The Mirage gets 36 miles per gallon in the city and 43 mpg on the highway. The compact hatchback comes in three models.
Interestingly, the Mirage gets poor reviews from car research firms and media. Car and Driver ranks it 2.5 out of 10, describing the Mirage as “an unrefined small car with a down-market interior and a puny three-cylinder engine.”
These were the 10 used cars with the largest price increases:
- Mitsubishi Mirage (49.9%)
- Nissan LEAF (46.8%)
- Chevrolet Spark (44.7%)
- Mercedes-Benz G-Class (40.2%)
- MINI Hardtop 2 Door (34.8%)
- Lincoln Navigator (34.5%)
- Kia Forte (32.6%)
- Lincoln Navigator L (32.3%)
- Chevrolet Camaro (31.0%)
- Kia Soul (30.6%)
Click here to see which is the fastest-selling car in America.
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