Drivers looking to cut their fuel bills by swapping out a gas guzzler are running into another costly problem.
Used cars are getting more expensive again. That means Americans being squeezed at the pump could also face sticker shock on the lot.
Here's what to know
In August, the average used car listing price reached $27,239, according to Kelley Blue Book. Jalopnik said that figure was the highest since December 2022. Meanwhile, AAA reported national average prices of $4.32 per gallon for gas and $6.23 for diesel.
For drivers trying to lower fuel costs with a more efficient vehicle, the timing is rough. As Jalopnik noted, August was also a month when the nationwide average for gas never dipped below $4 a gallon.
A shrinking supply of used vehicles appears to be a major factor behind the latest price increase. Jalopnik reported that dealers had about 2.13 million used vehicles listed, compared with roughly 2.42 million in August 2022.
As a result, prices seem to be rising despite a point in the year when used-car values often level off or decline.
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More background
The shortage has roots in the production slowdown from the COVID era. Jalopnik reported that automakers built about 8.1 million fewer vehicles than expected during the pandemic, leaving a deficit that is still affecting the market.
Those vehicles never entered the new car market, which also means they cannot later become used car inventory. The issue is not limited to current dealer lots, as it runs through the broader ownership cycle.
The strain is particularly severe for less expensive vehicles. KBB added that dealers had a 44-day supply of used vehicles overall, compared with only 29 days for vehicles priced under $15,000.
Pre-owned vehicles are still being affected by a supply imbalance that has not fully worked itself out.
What's being done?
The situation puts drivers in a pickle. It's very expensive to fill up a gas vehicle, but buying an alternative, even used, isn't cheap or readily available. The lower supply of budget-friendly cars points to that.
"The bigger issue isn't necessarily the total lack of used cars, though," Jalopnik opined. "Instead, it's the lack of affordable cars."
In the comments section, readers were also hoping automakers would read the room and meet the demand for vehicles with fewer frills and more functionality.
"People are looking at used cars for two reasons, the newest batch of new cars are expensive," one wrote. "They are also 'buggy' and lack reliability."
Where can I learn more?
Rising gas prices have been at the top of the headlines as drivers consider alternatives.
• After gas hit $5, a driver bought a used police Blazer electric vehicle for commuting.
• This is similar to the situation in 2023, when the painful realities of gas prices pushed drivers to consider alternatives.
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