Everything has gone up in price over the past few years, but one item you might not have expected to see such a sharp rise in price is used cars. Unfortunately, their prices have risen so much that they are almost the same as new cars.
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According to Honda, a microchip supply shortage has played a large role in the problem, driving demand. According to a recent iSeeCars.com analysis of over 1.9 million used car sales, the average price of a 1-5 year old car averaged $33,582 in December 2022.
Although prices may be coming down now, GOBankingRates used data from iSeeCars.com to rank the eight most expensive countries to buy a used car. Here they are.
Average price of a used car: $36,119
The COVID-19 pandemic has had a major impact on auto sales in Washington state. According to K5, a Seattle-based CBS News affiliate, low supply and high demand have driven up used car prices in Washington.
Prices in major cities like Seattle, Tacoma and Bellevue rose a staggering 40.7% from February 2021 to February 2022, according to the Bureau of Labor Statistics.
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Average price of a used car: 36,343 dollars
Arkansas also suffered from supply chain issues that drove up used car prices by more than 20%, or about $6,000, between 2021 and 2022. THV11 News reported that the highest-priced cars tend to be the Toyota Rav 4, Dodge Charger and Toyota Camry.
Average price of a used car: $37,092
Idaho has faced similar supply and demand issues that have driven up the price of used cars. According to Value Penguin, Idaho is one of the states where residents look for the oldest used cars, perhaps because they are cheaper.
Average price of a used car: 37,192 dollars
South Dakota residents saw an increase of about 36.1 percent in their used cars between 2021 and 2022, according to KKRC, a South Dakota news channel. Like Idaho, South Dakota is one of the states where residents look for the oldest used cars.
Average price of a used car: 37,773 dollars
While all of the states on this list have seen outrageous increases in used car prices due to supply chain issues stemming from the pandemic and other economic pressures, North Dakota saw the biggest increase. Between 2021 and 2022, used car prices rose 43.5%, to about $11,413, according to KX News.
Average price of a used car: 38,943 dollars
Montana may have no sales tax, which makes it cheaper to buy a car in one way, but it didn’t keep pace with inflation in 2021-2022. Prices rose 42.9% in ‘The Treasure State.
Average price of a used car: 40,462 dollars
Alaska is known as “The Last Frontier,” and people who buy used cars here may really feel that moniker. According to the Anchorage Daily News, car prices have risen nearly 50% since 2020, with 37.2% of that occurring between 2021-2022. Cars that were as high as $15,000 before the pandemic sold for nearly $23,000 in 2022.
Average price of a used car: $41,405
Wyoming, known as the “Equality State,” isn’t so equal when it comes to used car prices. It’s the number one most expensive place on this list, with a used car costing as much as some new cars.
According to the Cowboy State Daily, Jessica Caldwell, a salesperson at an auto buying consulting company, was quoted as saying the auto market is “scary” and “ridiculously overpriced.”
Wyoming faces the same challenges as other states, such as a global shortage of microchips and other components in many new cars. However, Wyoming is a state where you absolutely have to have a car to cover miles of country roads, so maybe the demand here is just higher.
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This article originally appeared on GOBankingRates.com: 8 States Where Used Cars Are Worth the Most