Oklahoma City Metro Has Third Biggest Increase in US Used Car Prices | New
A lingering supply chain problem causes residents of Normandy looking for a used car to pay hundreds, if not thousands, of dollars more for that same vehicle than in previous years.
Of the 50 most populous metropolitan areas, Oklahoma City ranks third for the largest increase in used car prices for August, at 33.4% from August 2020, according to the Automotive Research website. iSeeCars. Of these subways, Oklahoma City ranks 2nd out of 50 for highest used car prices in 2021, iSeeCars reports.
Automotive Culture Publication Automatic week cites the decline in the availability of new cars due to the shortage of microchips leading to increased demand for used cars as the reason for the steep rise in prices. The Oklahoma City Metro in 2020 ranked 32nd out of 50 for the highest used car price, according to the iSeeCars report.
Karl Brauer, executive analyst for iSeeCars, said the shift from one of the most affordable places to buy a used car to one of the more expensive markets is testament to the mix of vehicles in the region, such as vans. He also mentioned that trucks are a popular vehicle in Oklahoma.
âOklahoma also has the third lowest share of sedans, whose price on average has not increased as much as SUVs and trucks,â Brauer said.
John J. McGregor, owner of The Pickup Shop on Flood, said a vehicle that would normally cost between $ 5,000 and $ 8,000 now probably costs around $ 2,500 more. For vehicles $ 20,000 to about $ 40,000, the cost is about $ 5,000 more than in previous years, he said.
As a small dealership, McGregor said the main goal in these market conditions is to find a way to keep customers happy without overburdening them. To achieve this, it needs to be more selective in purchasing vehicles at auctions, he said.
In recent years, McGregor has said he could focus on acquiring as many vehicles as possible, but recently he has focused more on price over quality, with less concern. on the mileage of the vehicle.
âI don’t want to pass a higher car price on to the next dealership or the next consumer,â McGregor said. “The profits are down, but the sales are still there, so we’re trying to make sure we’re buying the right car or the right truck.”
In addition to domestic market conditions, another hurdle local dealers face is hail, McGregor said.
After two softball hail-sized storms that hit Norman in April and tennis-ball-sized hail earlier this month, McGregor said a much of the town’s new and used dealer inventory had been destroyed.
âNormally when an accident happens or a storm causes damage, you pick up the car, fix it, or you have it totaled and you pick a new one,â McGregor said. “At the moment there is no inventory for new cars, and the used selection has been battered by hail.”
Jonathan Fowler, chairman of Fowler Holdings, said that since 2020 he has focused more on trading vehicles as a way to replenish inventory because people are getting more value than ever for their used vehicles.
âSometimes customers don’t even want to buy another car, but they have one that they want to sell,â Fowler said. âWe are very much in tune with this market and we pay a lot of attention to it. “
Fowler said he has withdrawn from auction buying, although he still attends, buying selectively to fill the gaps.
Brauer said purchasing a smart vehicle could take time under current market conditions, but it could potentially save money. He said one of the most important factors in saving money is where to buy.
âAs our stats show, if you’re looking for a truck but you’re in Oklahoma where truck prices have gone up a lot, you might want to try and get to a state where they’re not as popular,â Brauer said.
Brauer said it was important to consider the time it takes to travel to purchase the car, as well as the price of the targeted vehicle both in the area where they live and where they might be traveling to get it.
âLet’s say you drive 300 miles to get a car and it took you 10 hours to get the car in and out,â Brauer said. âIf you save $ 1,000, then you’re saving $ 100, and most people would take a job that pays $ 100 an hour. Just be prepared to be more flexible with color, trims, year options, and most importantly location.