Used car prices jump amid pandemic-induced shortages, lack of new vehicles

If you have a car that you’re not making use of, now is the time to sell it. That’s according to one car dealership manager, as the demand and asking price for used cars reaches new heights.

Andrew Guo, manager at 715 Motor Haus tells CityNews, used car prices have jumped 10 to 20 per cent in value just this past year. For some vehicles, that jump even higher. This is due to pandemic-related shortages and a lack of new available cars.

However, the shortage won’t last forever, so Guo advices owners to sell their vehicles while they can, if they want a big bag of money.

“When new cars are available; when there’s better supply; then used car prices will come back down to more [of a realistic price],” he said.

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Guo says, if you bought your vehicle before the pandemic, you’re likely going to “come out of it on top.” In the worst-case scenario, “you’ll be getting back what you put in.”

Automotive journalist Richard Dettman says the main reason for the price changes is a lack of micro-processing chips, of which modern vehicles use hundreds.

On the flip side, Dettman says if you’re looking to buy a vehicle, try and buy a new one if you can find one. He says from an economic standpoint, it will hurt the wallet a lot less than if you buy used.