MINNEAPOLIS — If you've been in the market to buy a new or used car you know it's slim pickings out there.
In fact, a new report from iSeeCars.com found that prices of used cars in Minneapolis have skyrocketed.
"We've really never seen this happening before where used car prices are going up and used cars are a appreciating asset versus a depreciating asset. That's really not what they are supposed to do," said Karl Brauer, an executive analyst with iSeeCars.com.
Karl says prices of used cars in Minneapolis are up nearly 32%, costing you an average of $8,000 more for a used car.
"It's a culmination of factors. We've had the shut downs from the pandemic which slowed the production of new cars, then we got back to having the factories operating again. A lot of the global microchip supply has been redirected to personal electronics so gaming consoles, phones, computers etc." Karl said.
Karl says people wanting to buy a car are holding on to their old one, making the supply of used cars extremely low and costing those on the hunt for a used car a lot more.
According to iSeeCars.com's latest report, a used Toyota Corolla had the highest appreciation in Minneapolis, up nearly 50% in price.
"Some of the other cars are the Nissan Ultima, the Honda Civic, the Hyundai Sonata… which is interesting, it's a lot of sedans," Karl said.
The usual inexpensive option, compared to an SUV or a truck, is becoming increasingly popular. Karl says it's a problem that's not going anywhere anytime soon.
"Even if we had full new car production starting today, it would take months and months to clear that backlog of demand and we don't have full production today," Karl said. "So we are probably looking at a good 12+ months before we are out of this, assuming that we could get up to full production in the next six months."
Karl adds that if you must buy a car now, try to be flexible about things like the make, model and color. Even being willing to drive or fly to get the vehicle of your choice may help you in this competitive market.
Watch the latest coverage from the KARE11 Sunrise in our YouTube playlist: