Study Shows Used Car Prices Soaring In Most Of Connecticut

CONNECTICUT — Used car prices have jumped nearly 15 percent over the past few months in most of Connecticut, but the surge is still below the national average, a survey shows.

According to iSeeCars' newest study, used car prices in April increased an "unparalleled" 14.8 percent — or $3,071 — in the "Hartford" market over a year's time in the wake of a worldwide microchip shortage. The survey defines the Hartford market as Hartford, Litchfield, Middlesex, New Haven, New London and Tolland counties.

Nationally, used car prices have increased 16.8 percent, or $3,926 compared to last year, the survey shows.

Prices for some vehicles have increased more than average, making them "the worst vehicles to buy," while presenting lucrative trade-in opportunities, according to the survey.

Other cars "defied the trend" by either decreasing in price or by slightly increasing in resale value, "proving that not all used car shoppers have to significantly overpay for a vehicle," according to the survey.

Key findings of the survey include:

• Pickup trucks and sports cars had the highest price increases, which makes them the worst vehicles to buy and the best vehicles to sell
• The best used vehicles to buy right now are those with minor price bumps like some smaller sport utility vehicles, hatchbacks, and minivans
• Tesla's Model S is the only used vehicle that has decreased in price

According to the survey, the present "global microchip shortage is restricting new car supply, which leads to restricted used car supply due to fewer people trading in used cars."

The combination of diminished supply and increased demand has caused used car prices to soar, the survey claims.

"The current used car price increase is unparalleled, and prices will likely remain elevated for the foreseeable future due to the magnitude of the global microchip shortage and restricted new car supply," iSeeCars Executive Analyst Karl Brauer said. "We've identified the used cars with the greatest price increases, which can represent lucrative trade-in opportunities for their owners."

Although the average used car has significantly increased in price, iSeeCars’s analysis also found that some vehicles defied the trend by either decreasing in price or by only slightly increasing.

"While used car deals are hard to find, they are still out there, or at the very least, there are used car models that won’t come with as much sticker shock as the average vehicle," Brauer said.

The full study can be found at:

• https://www.iseecars.com/used-car-prices-study