Vehicle ownership has long been a big part of the American dream.

Yet that increase was nothing next to what happened in the used market. The average price of a used vehicle surged nearly 14% — roughly 10 times the rate of inflation — to over $23,000. So when buyer demand picked up late in the year, fewer used vehicles were available. “There are millions fewer used vehicles that are going to be available starting next year, 2022 and 2023,” he said. Dealers say competition for used vehicles, especially from upstart online auto sellers Carvana and Vroom, contributed to the price increases with bidding wars at auctions.

WASHINGTON – U.S. consumer prices rose 0.4% in August as used car prices surged by the largest amount in 51 years, the Labor Department reported Friday. However, there were still areas that showed bigger price increases, led by a 5.4% jump in used car prices, the biggest monthly gain since March 1969. New car prices were unchanged in August but analysts predict prices are likely to rise in coming months, reflecting supply shortages. Used car prices are up largely because auto sales crashed in March and April as factories and dealerships shut down to stop the spread of the coronavirus. '”According to Cox's Kelley Blue Book, the average price of a used car rose 8.3% from February through August, to $21,932.