It's car-buying season! But many hopeful buyers are ending up with a severe case of sticker shock this year because used car prices are higher than ever.
Car dealer Gary Heflin is busy these days with all the people shopping for used cars.
But used cars are not great bargains anymore.
Edmunds.com reports prices are up 14 percent in the past year.
Heflin says it has to do with new car prices hitting a record $40,000 combined with buyers flushed with stimulus checks.
"There's a lot of people in the market," Heflin said. "It's just like home sales and car sales, they are both doing well. But there's a shortage in both markets that drive up prices."
Most in demand? Jeeps and any kind of truck.
"Pickup trucks, cargo vans, work vehicles," Helfin said.
Next to pickup trucks and jeeps, three-row SUVs for the family are the hottest sellers for families right now. But unfortunately, you will pay a lot more for them right now.
Prices are so high on some two and 3-year-old trucks and SUVs, the automotive website "iseecars.com" says in some cases, the new version of that car may be a better deal.
"If it's two percent cheaper to buy a 1-year-old one, why not just buy a 1-year-old one?" said Karl Brauer.
Among the vehicles where new can be a smarter deal:
- Jeep Wrangler
- Toyota Tacoma pickup
- Toyota 4Runner
- Nissan Frontier pickuo
- Honda Pilot
In many of those cases, you can get the car for just $2,800 more than a 1-year-old version.
"At that point, you should just buy the new car."
But let's say you want to spend less than $15,000. Heflin said to buy a four-door sedan, not an SUV.
He recommends three or 4-year-old Kia and Hyundai cars because they come with a five-year manufacturer warranty.
Under $10,000? He said there are not many low-mileage ones available.
"If you find something under $10,000 that you feel good about, don't wait!"
Just have it inspected, Helfin warns. Because many cars under $10,000 can be money pits.
If you feel like prices are too high or what you want, Helfin suggests you drop down a car size and take your time so you don't waste your money.
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