Attention Buyers: Used Car Prices Are Skyrocketing In Seattle

A recent nationwide trend in used car sales is hitting Seattle.

KIRO 7 reported that car dealerships have fewer cars available to purchase for their lots, meaning they have to raise prices to compensate. Some car buyers are paying almost retail prices for used vehicles.

George Riad, the owner of Daily Deals Auto Sales in Seattle, said the business tries to keep a full inventory of roughly 50 cars a month. But he's selling faster than he can restock.

“I ended up with, at the end of April, 10 cars,” Riad said. “And we were furious because we can’t replace the cars we’re selling, so that’s when we start pricing these cars a thousand to two thousand more.”

A global microchip shortage earlier this year has affected new vehicle production. As a result, used cars that are usually bought by smaller sellers are getting picked up by large dealerships. This trend has drove up the prices of used cars, making it difficult for small dealerships to stay competitive, KIRO 7 said.

An iSeeCars study said used-car prices have skyrocketed since last June, increasing by 32.7%. In Seattle, these prices have jumped 27.7%, reporters added.

“We’re not buying them as cheap as we were buying them a year ago,” Riad told the outlet. “So we’re paying all this money for these cars, and our profit margin obviously dropped this year because, you know, we’re buying high, and we’re trying to compete with the market.”

The dealership owner predicts the buying frenzy to go on for another six months to a year.

Sports cars and pickup trucks have seen the steepest price hikes, while small SUVs, hatchbacks and minivans are the most affordable, according to the study.