Inflation on the rise in the Denver subway and elsewhere – new car inventory is not – The Denver Post
The Denver metro consumer inflation rate continued to accelerate in May, increasing 2.1% from March and 3.2% over the past year, increasing costs transportation being one of the main drivers of the gains, the US Bureau of Labor Statistics reported Thursday.
Food price increases, up 2.3% last year, are moderating, while rents remain stable. But buying a vehicle, filling its tank and insuring it became much more expensive than last year, when consumers crouched down and stayed off the roads if they could.
Gasoline costs on the Denver subway jumped 68.8% last year, while auto insurance premiums are up 27.3% and prices for used cars and trucks are up 28.6%, according to the BLS.
A shortage of semiconductor chips has limited the supply of new cars, leaving manufacturers unable to meet demand spurred by the billions of dollars the federal government has provided directly to households. Faced with the lack of new options, consumers rely on used models.
The online car buying website iSeeCars.com looked at 800,000 sales of 2015-2019 model year used cars manufactured in April 2020 and compared them to 400,000 used car sales in the year. ‘2016 to 2020 model year manufactured in April 2021 to determine how much the average prices paid for each model had changed.
Nationally, the average price paid for a used car has risen 16.8%, or $ 3,926, in stark contrast to the saying that a new car loses a lot of value once it is sold. leaves the dealership lot. In the Denver subway, the gain was 14.7% or $ 3,577, which ranked ninth out of 50 subways.
Last year, it seemed that some consumers had raised the prices of used cars because the economy was on shaky foundations and they needed an affordable price. Now the story has changed. The better-off have extra money to spend, and some pour that money into more enjoyable rides, with used models replacing new ones.
“The pandemic has created a clear dichotomy between the haves and have-nots, as we have seen the demand for sports and luxury cars increase and the demand for more fuel-efficient cars decline,” said Karl Brauer, executive analyst at iSeeCars, in an email.
Nationally, the Chevrolet Corvette C8 is the top-rated used car, up 33.9% or $ 17,432. This model is quite new, hugely popular and even in normal times it would probably have been under-supplied.
Metro Denver did not have enough Corvette C8 sales to provide an adequate sample, which left the Chevrolet Camaro as its leader in price gains. Used Camaro models soared 47.9% in value or $ 11,808. Then the BMW 5 Series, which recorded a gain of 33.8% to a value of $ 9,593.
The next three biggest winners in the Denver subway were the GMC Yukon XL up 30.9% or $ 12,801, the Ram Pickup 1500 up 30% or $ 8,486 and the GMC Sierra 1500 up 28 , 4%, or $ 10,005.
âThe Ram 1500 and GMC Sierra are considered more luxurious trucks, which is why their pricing has seen the biggest gains in the pickup segment,â said Brauer. “As we have seen, luxury buyers are more likely to pay extra for their used vehicles, which is reflected in their significant price increases.”
Cars.com, another car buying site, published a survey that also highlighted how tight the auto market has become. One in three shoppers said they had driven 100 miles or more to track down a car, while 13% had ventured more than 250 miles in search of a set of wheels.
“With today’s auto inventory challenges, recent car buyers are going to great lengths to find the car they want,” Kelsey Mays, associate editor of Cars.com said in a statement. âI don’t expect this trend to slow down either. Of those consumers currently in the market buying a car, 65% said they would consider buying in another state.