Used car prices came down slightly in August since peaking in June, but they are still significantly higher than they were last year. As the microchip shortage-related plant shutdowns continue, and with the aftermath of Hurricane Ida expected to further elevate prices, there appears to be no relief in sight for used car shoppers.

How much have used car prices gone up? According to iSeeCars.com’s latest analysis of over 1.9 million used car sales in August, used car prices increased 26.2 percent, or $6,454, compared to the same period the previous year. This comes after a 31.6 percent increase in July and a 32.7 percent year-over-year increase in June.

Used Car Price Increases by State

Are used car price increases consistent across the country? Here are the average used car price increases by state in ascending order:
Used Car Price Increases by State: August 2021- iSeeCars
Rank  State Year-Over-Year % Price Change Year-Over-Year $ Price Change
1 New Jersey 18.1% $4,470
2 New York 20.4% $5,005
3 Rhode Island 22.3% $4,970
4 Wyoming   22.5% $7,575
5 Tennessee  23.3% $5,814
6 Mississippi  23.7% $5,967
7 New Hampshire 24.2% $5,785
8 Colorado  24.3% $6,057
9 Pennsylvania 24.3% $5,834
10 Washington  24.4% $6,316
11 Maryland 24.5% $5,804
12 Arizona 24.7% $5,905
13 Illinois 24.9% $6,314
14 Michigan 25.2% $6,164
15 Massachusetts 25.4% $6,110
16 California 25.6% $6,315
17 Oregon 25.7% $6,532
18 Georgia 25.9% $6,493
19 South Carolina 26.0% $6,399
20 Ohio 26.2% $6,066
Overall Average 26.2% $6,454
21 Alabama 26.4% $6,493
22 Texas 26.5% $6,725
23 Virginia 26.6% $6,359
24 North Carolina 26.6% $6,530
25 Missouri 26.8% $6,607
26 West Virginia 27.2% $6,509
27 Florida 27.2% $6,286
28 Indiana 27.3% $6,478
29 New Mexico 27.5% $6,778
30 North Dakota 27.5% $7,468
31 Wisconsin 27.8% $6,811
32 Nevada 27.9% $6,627
33 Minnesota 28.1% $6,898
34 Connecticut 28.4% $6,446
35 Maine 28.7% $6,798
36 Nebraska 28.8% $7,175
37 Vermont 28.8% $6,773
38 Arkansas 29.5% $7,405
39 Delaware 29.6% $6,667
40 Montana 29.7% $8,492
41 Kansas 29.8% $7,297
42 Idaho  30.7% $8,105
43 Oklahoma  31.2% $7,699
44 South Dakota  31.3% $8,567
45 Kentucky  31.5% $7,438
46 Iowa  31.7% $7,763
47 Louisiana  32.5% $7,939
48 Utah  32.7% $7,586
49 Hawaii  39.4% $8,940
50 Alaska  46.2% $13,278
iSeeCars’ used car pricing analysis shows consumers may be able to get a better used car deal by crossing state lines.
  • Alaska is the state with the greatest used car price increase in 2021 compared to 2020 at 46.2 percent, which amounts to $13,728.
  • New Jersey has the smallest used car price increase at 18.1 percent, which amounts to $4,470.
  • Of the top 10 states with the lowest price increases, five are Northeastern states.
  • Of the top 10 states with the highest price increases, four are Western states and three are Midwestern states.
What does this mean for consumers? The current state of the used car market presents a selling or trade-in opportunity for consumers who may have one of the vehicles with the greatest price increases. While consumers were previously advised to wait to purchase a used car if they were able to do so, the microchip shortage is expected to persist at least a year longer than originally anticipated. The best way to avoid severe price hikes for the foreseeable future is to purchase a used vehicle that isn’t in very high demand, such as a sedan , and if possible, purchase it from a state or region with lower price increases.

Methodology

iSeeCars.com analyzed over 1.9 million 1-5 year old used car sales in August 2020 and 2021. The average listing prices of each car model were compared between the two time periods, and the differences were expressed as both a percentage difference from the 2020 price as well as a dollar difference. The average used car prices in each state were calculated. Heavy-duty vehicles, low-volume vehicles, vehicles discontinued as of the 2021 model year, and vehicles with fewer than 4 of the 5 model years for each period were excluded from further analysis.

About iSeeCars.com

iSeeCars.com is a car search engine that helps shoppers find the best car deals by providing key insights and valuable resources, like the iSeeCars free VIN check reports. iSeeCars.com has saved users over $309 million so far by applying big data analytics powered by over 25 billion (and growing) data points and using proprietary algorithms to objectively analyze, score and rank millions of new cars and used cars.