Raleigh, N.C. — The car you own now may be worth more than when you bought it. It may be tempting to sell it at a profit, as long as you are aware of the cost of replacing it with a new car.
The new car market was very different in the midst of the pandemic. Car dealers offered all kinds of bargains to attract buyers.
“Last year was a great time to buy a car, but now, not so much,” said Benjamin Preston, an automotive reporter with Consumer Reports
The microchip shortage was a result of fewer people considering a new car while COVID-19 precautions remained in place. It delayed new car supplies so, as a result, used car prices have surged.
ISeeCars.com offers a list of top ranked used cars which are now worth more than when they were new. Kia’s Telluride tops the list, worth 8% more than when new.
Others in the top 10 attract from 3% to 6.4% more than their purchase price. To sell or not to sell is the real question.
“It’s a great time to sell, but only if you have a bead on a new car or if you need to replace it or if you just don’t need it,” explained Preston.
That’s because jumping into the new car market is likely to cost you even more. You could settle for lower demand vehicles like small sedans, hatchbacks or SUV’s without 4 wheel drive.
Preston offers a third option.
“If you are looking at your old car, maybe it’s broken or something. Even for a larger repair, it might be worth fixing it right now,” said Preston. It could cost you less in the long run than buying a new car in the current market.
Preston says the microchip shortage behind the current low supply of new cars is likely to continue well into next year.