Used car prices continue to climb as gas prices, supply chain backlogs drive up demand

With record gas prices and supply chain issues delaying new car production, more people are looking for cars with better mileage.

That means more business for used car dealers.

"The economy is kind of tough right now," said Carson Cars salesman Luis Zarate. "They’re looking for a used car, low mileage, and they can rely on it." 

Many dealers are having a harder time getting used cars, forcing them to get creative to fill their lots. 

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"We’ve been working really hard and had to do some untraditional sourcing for inventory, for sure," said Carson Cars owner Mike Carson. "I mean, just going to the auction isn’t working. We’re buying cars out of the paper. We’re opening up different avenues to different buyers."

There’s more demand than supply for used cars right now. That means dealers have had to increase their prices. 

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"The market is driving the pricing. In general, the pricing has got higher," Carson said. 

Used cars are also more expensive because of those ongoing supply chain issues. The price for a used car has spiked over the last two years. The average listing price is up almost $9,000. Cheap deals are getting harder to find.  

"It’s still pretty challenging, especially if you’re looking for a vehicle in that lower price range," said Kelley Blue Book Senior Editor Matt Degen. "If you’re trying to find a car that’s under $10,000 to under $15,000, that’s even more challenging."

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It could be a while before it’s a buyer’s market.

"You might have to be looking a little bit longer to find the vehicle you want," Degen added. 

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For dealers, if demand keeps going up, so will their prices. 

"As long as there is a demand like there is right now, I don’t foresee the prices going down," Carson said.