PHOENIX — Rising prices have affected everything from furniture to groceries. Chances are if you're in the market for a new or used car, you've felt it too.
"I think the word is challenging," said Matt Degen an editor at Kelley Blue Book.
Used car prices are off the charts, with certain models seeing as much as a 60% increase just since January 2021.
Degen blames those three dreaded words: supply chain issues.
"At the beginning of the pandemic, we had production, slowing or ceasing of new cars. And then last year, we really had the microchip shortage," said Degen.
With nothing new, demand for used cars is huge. So, you may have to make sacrifices. Like choosing a different color or trim, even buying a lower-end new car could be a better deal, especially if you have a trade-in.
"Because used car prices are higher, that means the car that's sitting in your driveway, the car that you're going to be trading in, you're going to get more money for that," said Degen.
The extra features you were paying more for in an older car are now standard in most base model cars and when you compare, those new car prices look pretty good.
For example, we found a 2020 Toyota Camry SE with 13,000 miles listed at $29,000.
A new, base model 2022 Toyota Camry starts at $25,000.
A 2019 Kia Forte LXS with 50,000 miles was listed at $19,900, but a brand new 2022 same model is even less at $19,100.
Now, there may be added costs, but for the first time, I'd say it's worth looking at new cars for better deals.
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