Used cars cost 40.5% more than last year as gas prices rise. New car prices also climbing
It's a bad time to buy a used car. And a great time to sell one.
According to data released by the U.S. Bureau of Labor Statistics on Thursday, the consumer price index for used cars and trucks jumped up by 40.5% from January 2021 to January 2022. That means within a year, the average price of used cars and trucks for urban consumers has gone up by 40.5%.
The number of used car transactions has also grown, according to AUTO1, a used-car marketplace. In the past year, the marketplace had approximately 330,000 vehicle transactions, AUTO1 told USA TODAY.
Bleak as the market is for used-car buyers, the computer chip shortage has also driven new-vehicle prices higher. The average new vehicle, Edmunds.com says, is edging toward $46,000.
The price for new vehicles in January has gone up by 12.2% since the same time last year, according to data from the U.S. Bureau of Labor Statistics.
The prices for used cars have risen faster than the rate of inflation, already at record-high levels, wiping out pay raises and reinforcing the Federal Reserve’s decision to begin raising borrowing rates across the economy.
The Labor Department said Thursday that consumer prices jumped 7.5% last month compared with 12 months earlier, the steepest year-over-year increase since February 1982.
In general, transportation is getting more and more expensive.
Gas prices as of Sunday were at $3.49 per gallon, up nearly a dollar from last year's average of $2.50, according to AAA. The consumer price index shows that gasoline has gone up 40% since the same time last year.
'Pain at the pump': Your medium-sized car costs you $12 more per tank of gas than a year ago
The data also shows that transportation services - such as buses, trains, airlines, and taxis - increased by 5.6% in the past year, albeit not at the same dramatic rate as used cars and gasoline.
Michelle Shen is a Money & Tech Digital Reporter for USA TODAY. You can reach her @michelle_shen10 on Twitter.
This article originally appeared on USA TODAY: Used cars cost 40.5% more than last year