Used car prices are expected to climb as Americans fall victim to the new car manufacturing shortage, according to the co-CEO of an online used car marketplace.
"We’re seeing a continued rise in [used car] prices," Shift co-CEO Toby Russell told "Varney & Co." host Stuart Varney Friday.
The average price of a used car was $28,364 in September, up nearly $8,000 since February of 2020, according to Edmunds.
When Varney asked Russel to give an example of how the average price of a Ford sedan has increased compared to a year ago, he stressed that there has been a "substantial change" in used cars.
"Around 30% or more of the car that is sitting in your driveway right now," he said. "It might have been that you had a car that was worth $10,000 back then. It could be up to $13- $14,000 now, even more, potentially depending on the part of the country you’re in."
The demand for used cars comes as Americans try to revert back to normalcy following over a year of pandemic-related restrictions, Russell pointed out.
Despite the sharp rise in prices, consumers are eager to get their hands on their "new" whip.
"What we’re seeing is consumer demand remains. Folks are coming out of COVID, wanting to be out and about, wanting to be able to drive," he explained.
The simplicity of the online used car marketplace company has made itself an attractive hot spot for customers eager to get their hands on their "new" whip.
"It’s an exchange. We buy from consumers, sell to consumers," Russell said.
"Whether we’re delivering it to you anywhere in the country or bring it to your house for a test drive. It goes from your computer, to your home and you can shop online without having to interact with anybody. You can then choose a car and we will sell it to you online and bring it to you," he added.