Used vehicle prices are skyrocketing: 'The average person can’t afford the average used car right now'

Average used car prices have risen significantly over the last month of 2021 for a new average cost of $29,000, according to AutoBlog.

The U.S. Bureau of Labor Statistics Consumer Price Index reported the average price of a used vehicle in November 2021 was $26,000, but the average for December jumped a whopping $3,000.

“We’re not seeing any softening in prices, which is extremely rare for this time of the year,” David Paris, a senior manager at J.D. Power, told AutoBlog.

The average used vehicle price grew by 39% in the past year. Edmunds experts reported that the price of a new car is approaching an average of $46,000, which is an increase of 13%.

Half of U.S. households now have an income less than the income considered necessary to buy a car at the average used price of $29,000.

"The average person can’t afford the average used car right now,” Kimberly Palmer, a personal finance specialist at NerdWallet, told AutoBlog. "People are going to have to make hard decisions, maybe cut back in other areas. It means that it’s stressful for a lot of families.”