Used car prices drop as other costs rise

(CNN) – Excellent news for these wanting or needing to purchase a used automobile: Costs are falling. However that’s not the case for brand spanking new automobiles.

After years of low stock and hovering costs, the price of a used automobile fell almost 2% in January, in keeping with the Shopper Worth Index.

Knowledge from Edmunds exhibits the common worth of a used automobile in December was down $1,600, costing shoppers about $29,533.

When you’re trying to reap the benefits of the drop, specialists mentioned do your analysis first.

”Being aware and likewise being acutely aware of the automobile and attempting to get an in depth historical past of that automobile might be most necessary if you find yourself available in the market,” mentioned Kayla Reynolds of Cox Automotive.

Consultants mentioned larger rates of interest are making it dearer to finance a automobile buy, which is limiting demand.

A rise within the provide of vital components like pc chips can also be pushing down costs.

President Joe Biden has pushed to broaden chip manufacturing at residence to stop future shortages.

“We’re opening factories in your states to construct semiconductor chips and electrical automobiles and superior batteries that’s going to energy these automobiles,” he mentioned.

In relation to new automobiles, costs rose .2% in January and had been up 5.8% yr over yr, the Shopper Worth Index exhibits, and automobile insurance coverage premiums are additionally climbing.

In keeping with Bankrate’s annual true price of auto insurance coverage report, the common price of full protection insurance coverage has reached $2,014 a yr nationally. That determine is up almost 14% from final yr.

Bankrate mentioned years of excessive inflation ensuing from labor and components shortages drove up the price of insurance coverage claims for automobile repairs.

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