(StatePoint) If you’re in the market for a new or used car… you’re not in luck. According to CarGurus, the average price of a used car in mid-May of 2021 was over $25,000, nearly $5,000 more than the previous year. The inflated prices are largely due to a global automotive microchip shortage that affected the production of new cars, in turn creating higher demand for used vehicles.
In addition to paying more for a car that is harder to find, your vehicle will almost always depreciate the minute it’s driven off the lot. Plus, should your car be damaged in a crash, you might not even receive enough money from your insurance company to replace it, unless you have the right coverage.