Some of the cheapest cars on the market are experiencing price increases. The Chevrolet Spark and Mitsubishi Mirage are both being set at higher purchase prices. The price of used cars, in general, is being driven up by the lack of new cars. Although both the Chevrolet Spark and the Mitsubishi Mirage have low starting prices new, their secondhand prices have increased by more than 50%.
Last year, the average sale price of a Chevrolet Spark was $10,397. In November of this year, the average sale price of a Spark was $15,672, representing a 50.7% increase.
The price increase for the Mitsubishi Mirage was a little higher, with a 52.3% increase. Last year, the average sale price of a Mirage was $9,459. This year, the price has increased to $14,404.
The highest increases on the market are for economy cars. Luxury cars are seeing smaller price raises. The lowest increases are 1.9-3 times less than the average price increase and includes luxury names such as Porsche and BMW, per Fox News.
Demand for Electric Vehicles as Gas Prices Rise
Although the Mirage and the Spark both have price increases, the price of the Nissan LEAF has increased the most, with a purchase price increase of 64%. iSeeCars‘ executive analyst Karl Brauer can pinpoint the increase for the Nissan LEAF.
“While used car prices for all electric vehicles have increased in recent months, the dramatic increase for used Nissan LEAF prices could be attributed to the 2018 model, which featured a significant bump in EV range, performance improvements, and an exterior facelift, and which only just entered the market this year in substantial numbers.”
The Toyota Prius has also seen a recent surge in demand (and in price). We’ve seen a 25% increase in gas prices this year, and even though the Prius is still seeing price hikes, it’s a popular choice for practical shoppers looking to cut down on costs.
Material Shortages for All Cars
A host of issues have caused material shortages for car manufacturers this year, including Ford and GM. Materials that are normally shipped are being left on loading docks and truck bays. Semiconductor chips are in short supply. Since semiconductor chips are used in a variety of items, supply and demand are grossly unbalanced.
Sales are down, and many assembly lines have closed in the last few months. There is less stock on dealership lots to buy due to the halt of manufacturing. However, SUVs and trucks are still bringing in profits for companies.
The shortage of chips is expected to follow us into 2022. New and used cars aren’t the only markets affected, and prices for household goods such as laptops and cell phones are expected to increase as well.