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.