Used car prices in Fresno rose an average of 36% over the last year, outstripping the national average during the same period.
These vehicles saw the greatest rise
The Toyota Corolla saw the greatest price increase over this time frame, with the Toyota Camry following it up. Other hardy vehicles, like the Honda Civic hatchback, saw increases in the 40% range.
Nationally, it was the Hyundai Sonata Hybrid whose prices rose the most. The national list included more electric vehicles and hybrids than Fresno, possibly responding to rising gas prices in the country. Two fully electric vehicles, the Nissan Leaf and Tesla Model S, made the national top ten.
Used car prices are rising due to a lack of inventory
Fresno’s numbers reflect a national trend. When manufacturers halted production of new vehicles as a response to the COVID-19 pandemic, a shortage of new vehicles ensued. As a result of the supply shortage, the price of used cars rose as well.
The shortage especially highlights the need for greater microchip manufacturing capacity. After all, most aspects of car production have returned to normal by this point. However, microchip manufacturers pivoted during the pandemic to producing computer chips, which were in higher demand at the time.
What can buyers do?
Buyers at this time are stuck between a rock and a hard place. They need to buy a car to get to work and go about their business, but they’re priced out of the used car market. So what can they do?
Most experts say to simply wait. Though the Russia-Ukraine crisis will keep microchip production slow for a while, most expect used car prices to return to more normal levels by the end of the year. For those who can wait, public transportation and ride-sharing are in their future. And when you do finally get that car, make sure you get it where it needs to go with the experts at Fresno Car Transport!