‘Be prepared to pay a lot’: Used car prices soar

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CHICAGO (NewsNation Now) — Used car prices are skyrocketing, with the average vehicle costing $20,000.

A recent U.S. consumer price index showed a 10% jump in the past 12 months for prices. It signifies the biggest price increase in decades.

Insider Senior Retail reporter Áine Cain attributes it to a supply and demand issue.

“You’re having the car market basically get squeezed from both ends and it’s really leaving a lot of people reeling when they see these prices,” said Cain.

She explained that a lot of people are looking for cars to travel and head back to work while vehicle manufacturers had to limit supply due to a smaller workforce during the pandemic.

Cain warned that consumers most likely won’t be able to negotiate prices down since the supply is so low.

“It’s quite a dramatic spike. And you’re either going to have to be creative with your car purchasing strategies or be prepared to pay a lot,” stated Cain.

Watch the full interview in the player above.

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