Selling your used car? You can take profit.

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Franco Ducage, owner of a Chevrolet Silverado, stopped by his dealership recently anticipating the purchase of new floor mats. Instead, he walked away with a killer deal: The store offered to buy his one-year-old truck for $3,000 more than he originally paid last spring.

“I was like a ‘holy cow,'” said Mr. Dekaj, who uses the truck for his auto detailing business. “It’s something I’ve never seen happen before.”

Used car prices, which have skyrocketed in recent months, are now defying economic gravity.

Dealers and analysts say that some car owners, once considered an ultimate consumer asset, find their cars worth – if not more – what they originally paid for.

Industry data shows that some popular pre-owned models, such as the Kia Telluride and Toyota Tundra, regularly sell for thousands of dollars more than the list price of all-new versions, with auto retailers historically declining in used-vehicle inventory.

The recent jump in used car prices is the latest in what has been a volatile year for the American auto business. Consumer demand for cars and trucks is approaching an all-time high, but car companies are struggling to keep up, with a global shortage of computer chips limiting factory production by new cars.

As a result, buyers who are unable to find what they want in showrooms are flocking to the used car yard, where inventory is also restricted due to fewer people turning over rental vehicles and car rental companies holding fleets of vehicles for longer because they are unable to. to find alternatives.

Prices of used cars and trucks jumped again, 10.5%, in June, according to the Labor Department, contributing to an overall rise in the consumer price index and heightening concerns about inflation in the United States.

“We have a long way to go before prices drop,” said Tyson Gomini, auto analyst at research firm J.D. Power.

He said that even if automakers were able to fully operate their plants again by the end of the year, car prices had risen so quickly, it would be at least a year before they were back to normal.

Presentation challenges are subverting the dynamics of traditional car buying.

Historically, it was cheaper to buy a used car over a new one, and in general this is still the case. But for some used models—mostly those with low mileage and purchased in the last year or two—the teams close quickly.

For example, the average price a customer paid in June for a one-year-old vehicle was only about $80 less than the selling price of a brand-new vehicle, according to JD Power. Company data shows that the gap is usually closer to $5,000 or more.

“It looks like we’re in Fantasia,” said Abel Toll, a New England auto dealer.

He said his trade group usually runs television ads advertising the prices of the cars he’s trying to sell. Now, it displays ads that tell customers the value of their cars.

Mr. Toll said the ad helped boost business on the new-car side because when customers realize how much they can get in a bargain, they choose a more expensive car or decide now it’s time to get their dream car. .

Utah auto dealer Stephen Wade said his dealerships were so desperate to restock used cars that they now have tents outside, where owners can get ratings from the car.

For some low-mileage models that are only a year or two old, Mr. Wade said, he’s offering customers what they initially paid.

“It’s just crazy,” said Mr. Wade. “And people come out of here tapping their heels.”

“It’s just crazy. And people come out of here tapping their heels. ”

Stephen Wade, car dealer

Even older models, including those with 100,000 miles or more, are rising in value.

Auto shopping website Edmunds.com found that the average selling price for a used vehicle between 100,000 and 110,000 miles in length was $16,489 in June, the highest price ever recorded and up from $12,626 a year earlier.

However, Mr. Wade and other dealers are concerned that prices are now so high that buyers may later feel they have overpaid, especially if values ​​fall over the next few years.

“That’s what’s keeping me awake right now,” he said.

Meanwhile, car shoppers, like Mr. Ducage, are milking the market for all it’s worth.

The small business owner said he typically incurs at least a 30% loss on each truck when he trades it. But this time, he decided to trade his entire fleet, make a profit from each one and use the money to upgrade to the higher content models.

“I can’t imagine this going to last longer than necessary, so I decided to take part in it,” said Mr. Ducage.

Write to Nora Naughton at [email protected]

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