Traditionally, economic uncertainty and a decrease in travel lead to reduced demand for vehicles, but the current used car market is defying expectations. Many recent model cars are now selling for more than their original prices due to a combination of factors.
One of the main contributors is a microchip shortage, which was exacerbated by COVID-related factory closures. Since cars typically require over 100 microchips, the shortage has significantly hindered production.
On top of this, supply chain issues, including a shortage of delivery drivers, have made it more difficult to transport completed vehicles to dealerships, further limiting the availability of both new and used cars.
The shortage of new vehicles is another key factor driving up prices for used cars. With new car supplies being extremely limited, consumers have turned to used cars, pushing their demand and prices higher. Additionally, the lack of older used vehicles on the market plays a significant role.
During the Great Recession, car manufacturers reduced production between 2009 and 2011, resulting in fewer well-maintained, affordable older cars available for resale. Programs like the government-backed Cash for Clunkers initiative also removed many older cars from the market, further depleting the supply of affordable vehicles.
As a result of these challenges, dealerships have been offering higher prices for trade-ins to build their inventories, which has also contributed to the rise in used car prices. According to Edmunds, the average trade-in value for used vehicles rose by more than 75 percent from June 2020 to June 2021, reaching an average of $21,224.
Used car prices are now 42 percent higher than they were in the first quarter of 2020, with some vehicles even selling for more than their original new price.
Given these factors, it’s important for potential buyers and sellers to check local market conditions before making decisions, as prices can vary widely based on location and specific vehicle models.
1. 2021 Toyota Tacoma TRD Sport
Price new: $41,862
Price used: $42,998
Pickup trucks have been consistent sellers in recent years, and the Toyota Tacoma has been a popular choice. In fact, some used models of the 2021 Tacoma are being sold with only a slight markup, making them almost the same price as new ones.
The high demand for trucks, combined with low new vehicle inventories, has led to significant price hikes. Nationwide, the Toyota Tacoma is seeing prices rise due to its ongoing popularity, with consumers eager to buy trucks in the current market.
2. 2021 Tesla Model 3 Standard Range Plus
Price new: $41,190
Price used: $49,950
The Tesla Model 3 has been holding its value quite well in the used car market, and one example from the Dallas area was listed at a 21% premium. Electric vehicles (EVs) like Teslas are becoming more desirable due to shorter commutes and reduced range anxiety.
The Model 3’s waiting list for new orders further strengthens its position in the secondary market, ensuring its used versions maintain high prices. With the growing interest in EVs, this premium for used models is expected to continue in the near future.
3. 2021 Toyota RAV4 Hybrid XSE
Price new: $38,781
Price used: $44,998
The Toyota RAV4 Hybrid XSE has become a popular choice among hybrid vehicle buyers, offering excellent fuel economy (around 40 mpg combined). Research shows that used 2021 RAV4 Hybrid XSE models are selling for approximately $5,000 more than the new models.
The hybrid version is in high demand, and the price difference is attributed to limited availability, as well as the increased focus on environmentally friendly vehicles. The base LE package for the hybrid offers a smaller markup, making it an attractive option for consumers.
4. 2020 Honda Civic Si
Price new: $24,602
Price used: $31,998
The Honda Civic Si continues to be a favorite among compact car buyers, and used models are now selling at a significant markup. The Civic, which gained renewed popularity with its 2016 redesign, remains a top seller in the United States.
In Ohio, where many Hondas are manufactured, used Civics are priced at nearly $32,000, which is about $7,000 more than the price of a new model. This price spike reflects the Civic’s enduring appeal and high demand in the used car market.
5. 2020 Kia Rio
Price new: $16,566
Price used: $20,590
Affordable cars like the Kia Rio have been hit especially hard by the ongoing chip shortage, as manufacturers prioritize higher-margin models. In Beverly Hills, a used 2020 Kia Rio LX with around 5,000 miles on it was listed for nearly $4,000 more than the new model.
Despite the price increase, the Rio remains an attractive option due to its fuel efficiency (41 mpg on the highway) and Kia’s strong warranty. As a result, even affordable models like the Rio are seeing significant price hikes in the current market.
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6. 2021 Kia Telluride SX
Price new: $50,648
Price used: $53,999
The Kia Telluride SX has become one of the hottest vehicles in resale value, having earned top ratings from Edmunds for two consecutive years. Despite being a relatively new model, the Telluride is already commanding premiums in the used car market.
In Seattle, multiple used Telluride SX models were listed for around $54,000, even with 3,000 to 13,000 miles on them. This surge in price is indicative of the Telluride’s ongoing popularity and its reputation for being a top-rated mid-size SUV, especially for families.
7. 2020 Honda Odyssey EX
Price new: $33,944
Price used: $37,590
Family vehicles like the 2020 Honda Odyssey EX are also seeing price increases, with used models in Pennsylvania selling for about $3,600 more than new ones. The Odyssey EX offers a balance of safety, comfort, and utility, making it an appealing choice for families.
The EX trim package provides a solid mix of features without a major price jump, which contributes to its strong resale value. With Honda’s renowned reliability and the vehicle’s spacious interior, used Odyssey models are a solid option for buyers in need of a family vehicle.
8. 2020 Dodge Challenger SXT
Price new: $27,869
Price used: $32,999
The 2020 Dodge Challenger SXT is another example of a used vehicle commanding a higher price than its original MSRP. In certain markets like Minneapolis, gently used Challengers are being listed for around $32,999—roughly $5,000 more than the price of a new one.
This increase in price is a reflection of the Challenger’s popularity as a roomy muscle car. Its unique blend of performance, comfort, and style makes it a highly sought-after vehicle in both new and used markets, even in a competitive segment.
9. 2020 Chevrolet Corvette Stingray Coupe
Price new: $81,425
Price used: $98,135
High-end vehicles like the 2020 Chevrolet Corvette Stingray Coupe are also experiencing significant price hikes in the used market. Given that the Corvette is a prestige vehicle, it has a built-in demand that keeps prices high. In the Boston area, several used Corvettes were listed for prices above their original purchase price.
Like the Tesla, limited availability and long waiting lists for new Corvettes create strong aftermarket demand. As a result, buyers looking for a nearly new Stingray are willing to pay more than what they would for a brand-new one.
10. 2021 Subaru Forester Sport
Price new: $32,987
Price used: $34,649
The Subaru Forester Sport is a reliable crossover SUV that has built a reputation for its all-wheel-drive capability and ample ground clearance. Popular in regions like Colorado and Michigan, where off-road trails and heavy snowfall are common, the Forester remains a dependable choice.
While its price markup isn’t as dramatic as some other vehicles on this list, we found used Forester Sports selling above MSRP in specific markets. This is a testament to the vehicle’s strong reputation and its continued popularity among outdoor enthusiasts and families alike.
The used car market is currently experiencing significant price increases, with many vehicles selling for more than their original new prices. This is due to factors such as chip shortages, supply chain issues, and increased demand for certain models.
Whether it’s pickup trucks like the Toyota Tacoma, electric cars like the Tesla Model 3, or family vehicles like the Honda Odyssey, nearly every segment is seeing price hikes. For consumers looking to buy or sell, it’s essential to keep an eye on market trends and pricing fluctuations.
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