If you are looking to buy a used car, you should consider using a used car price list. Using a price list is helpful because it makes it easier for you to compare used cars side by side to new ones. In this article, you will learn how a used car price list works, what to look for in a used car price list, and what to expect when buying a used car. You can also read about the impact of the microchip shortage on used car prices.
Transparency of used car price list
A new smartphone app called Vinny helps buyers compare wholesale prices of used cars. The app works by scanning the VIN of a car – the number found on the driver-side door or dashboard. Developed by Green Sky Labs, Vinny helps consumers negotiate better deals with dealers. According to Ken Research, used cars carry an average markup of 14 percent, while new cars carry an average markup of two percent.
Providing this information up front helps dealers differentiate themselves from less transparent dealerships. While consumers do not expect the lowest price, they do want to know that the deal is a fair one. Buying a car from a dealer who does not provide the price list up front increases the risk of being excluded from the consumer’s consideration list. Some dealers also refuse to provide the information unless the consumer physically visits the store.
While transparency in used car pricing has many benefits, it has some drawbacks. It may be time-consuming, costly, and dubious. However, the benefits far outweigh the downside. Getting a valuation for your car can be tedious, time-consuming, and uncertain. This is why transparency is an essential element of the used car market. With this transparency, you’ll be able to make the most informed decision when buying a car.
Impact of microchip shortage on used car prices
The chip shortage is a double whammy for the auto industry. This disruption is impacting new car sales as well. Manufacturers have cut production in response to the shortage, and now are facing an overwhelming number of new buyers. In California, carmakers are storing cars until the shortage is resolved. The problem is especially acute for foreign-built domestic brands. Because the supply of chips is limited, this situation could further impact new car prices.
Because the demand for chips is high, automakers have been adjusting their production to meet demand. The shortage of microchips in the manufacturing process of electric cars has caused automakers to stop making some models. Tesla CEO Elon Musk said that the shortage will determine production of electric vehicles for the rest of the year. Since the shortage of chips is temporary, automakers are not facing much pressure to discount used cars. Rather, they route scarce computer chips to higher-priced models, driving up average prices.
This situation is affecting the entire automotive industry. Many carmakers have temporarily suspended production and halted production as a result of the shortage. Other manufacturers are putting optional features on hold. General Motors, for example, has built some models without seat heating and ventilation. While missing features can be retroactively installed, they may affect the price of used cars. Because of the shortage of microchips, many new models have been delayed or recalled.
Cost of a used car compared to its new car equivalent
It’s important to compare the cost of a used car to the cost of a new one, and a lightly used vehicle can save you a significant amount of money. However, this type of purchase is uncommon in today’s market. To get a fair idea of the differences, we’ve listed a list of 15 used cars that cost more than their new car equivalents. The difference between used and new cars is vast, and includes a variety of vehicle types.
One of the main reasons why the cost of a used car is less than the cost of a new one is depreciation. A new car’s value starts to decrease the minute it leaves the dealer lot. In a used car, however, this value loss is more gradual, and occurs less frequently over the course of ownership. Buying a used car also allows you to avoid the massive depreciation hit that you’ll incur when purchasing a new car.
A study by iSeeCars revealed that 16 popular models were more expensive when new than when bought secondhand. These include models that have been discontinued or redesigned. The study also considered a variety of models, including cars that were not selling well in previous years. Despite the fact that pre-owned cars have increased in price, the typical pre-owned car costs less than its new car counterpart. According to iSeeCars, the average cost of a used car was 10.3% lower than its new car equivalent in the first half of November 2020, and just 3% more in June.