FAYETTEVILLE, Ark. (KNWA/KFTA) – Own a used car you don’t need? Well, now is a great time to sell.
According to Senior Analyst for iSeeCars, Karl Brauer used car prices in Northwest Arkansas have risen 20% over the last 12 months. Something which he’s never seen before.
“That’s translated into an increase of about $3,900 that you have to pay now for your average used car over the previous year,” said Brauer.
This is just the average. Brauer said trucks and convertibles have been even more in demand throughout this pandemic. It is resulting in an even more significant price jump.
“They have gone up more like 25%, and they’re up to $6,000 or $7,000,” said Brauer.
The driver behind this spike in car prices and demand, circumstances of COVID-19.
“The pandemic set up a unique circumstance where people were suddenly not interested in public transportation or even shared rides like Uber as much,” said Brauer.
He also points to people being able to work remotely as an additional reason.
“So suddenly, a lot of urban dwellers became interested in moving out of urban areas and buying their own transportation,” said Brauer.
Even with prices going up, the Sales Manager for Fayetteville Toyota, Chad Campbell, said it had not deterred locals from buying cars.
“It’s very competitive, which is good. Right now, we’re selling cars before they even get here; we’re selling them in transport on their way here,” said Campbell.
Brauer adds that it’s tough to predict the future because we’ve never seen a spike like this before. However, he believes this lack of demand and increase in price will continue for at least this calendar year.