PHOENIX (3TV/CBS 5) – Once affordable car models are now unattainable for the average consumer, a recent study by iSee Cars finds.
Used car affordability dropped 19.7% in Phoenix between August 2019 and August 2022. iSeeCars executive analyst Karl Brauer said that part of the reason for this is due to supply chain shortages and increased demand. “From August 2019, well before the pandemic lockdowns started, to August of 2022, new car prices increased by almost 29%, and three-year-old used car prices increased by 52%, but incomes increased by only 13%.”
In Phoenix, here’s a list of the top five 3-year-used car models that are no longer affordable for most families:
In comparison with the rest of the country, Phoenix is seeing the average price of a three-year-used car at $35,500. Phoenix made the top 10 list of the most cities that have seen used car prices increase over the past year, preceded by New York, San Francisco, Miami, Philadelphia, Boston, San Diego, and West Palm Beach.
Overall, the model with the greatest price hike was the Nissan LEAF, a model that’s risen by 43.8% in 2022. “The price increase for the Nissan LEAF, which was once the highest depreciating car on the market, is likely due to heightened gas prices as well as the heightened desirability for the redesigned 2018 model that offers increased range and is now coming off lease to enter the used car market,” Brauer said. Tesla Model S and the Chevrolet Bolt are two others that made the list.
Another reason for the nationwide price hikes is because of the ongoing chip shortage. Microchip supplies were forced to stop production during the COVID-19 pandemic, and when they were able to return, they were forced to catch up on microchip production for personal electronic devices due to widespread lockdowns and working from home. This slowed down production for automakers, something the industry is still dealing with.
Copyright 2022 KTVK/KPHO. All rights reserved.