If you have gone shopping for a used car lately chances are you noticed prices are much higher than expected.
According to a study by ISEECARS.com, the cost of a used car in Texas rose by nearly 25 percent in November of 2021 alone and that number is still going up.
It's a trend experts say is a mixture of supply chain issues and a rise in demand for used cars.
”Especially now that people have started going back to work and they’re tired of being hunkered down for the past to years. So, they’ve faced the new day and they want a new car,” said Dr. Rob Tennant, Professor of Economics at Texas A&M Central Texas.
They don’t just want a new car, they want one they can afford and as the prices increase so too does the monthly payment.
"$200 payments don’t hardly happen anymore. $2,000 cash cars don’t really happen anymore,” said Cory Simek, Owner of The Key Kennect Auto Dealership in Killeen.
A lot of that is due to dealers having to pay more for the vehicle they plan to sell.
”It’s not us, it’s just the way the prices have raised on everything. Food, houses, the car market is no different. We’ve been paying 30 percent to 40 percent more on all our vehicles,” said Simek.
Experts don’t see this trend ending anytime soon.
”I wouldn’t be surprised if this last through the middle of the year. It is hard to predict past that but, but I don’t see anything changing fundamentally in the next 4 to 6 months,” said Dr. Tennant
The bottom line, as dealers continue to pay more for their vehicles, you will too.