CARY, N.C. -

It’s like the old proverb, “a bird in the hand is worth two in the bush.”

Or to put it in automotive parlance, that late-model car a consumer can get their hands on now could be worth more to them than a new version of the same model, holed up in production delays or lack of availability.

At least that’s what iSeeCars.com has found rings true for some “lightly used” vehicles.

While the chip shortage has hampered both new and used supply — and prices for both are sky high, albeit with some slowing in the new price gains — iSeeCars found that between November and the first half of June, the gap between average “lightly used” vehicles and new vehicles narrowed from 10.8% to 3.1%.

The company discovered this through its analysis of more than 470,000 new and lightly used 2019 and 2020 model-year vehicles for sale last month.

In a separate analysis, Edmunds found that overall used-car transaction prices for the second quarter ($25,410) were at their highest-ever quarterly level. Used ATP was also up more than $2,000 from the first quarter ($22,977) and more than $4,000 from a year ago ($20,942).

“Tighter inventory and fewer discounts in the new-car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used-car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights, in a news release. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.” 

Meantime, Edmunds has noticed that run-up in average new-car transaction prices is “leveling off,” moving from $40,070 in Q1 to $40,827 in Q2 — just a $757 increase.

It attributes this development to a changed mix in what’s available, with pricey pickups now commanding a lower share.

Of the new vehicles available in Q2, 17.1% were pickups, down from 22% a year ago, according to Edmunds. Conversely, 54.6% were SUVs (up from 51.3%) and 23.8% were passenger vehicles (up from 23%).

“Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average transaction price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.”

Or, as the iSeeCars analysis shows, opt for a used edition of the same model, which oddly enough may come with a heftier price tag.

Used cars fetching more than new

In its analysis, iSeeCars also found 16 vehicle models where the lightly used variety was more expensive that the new version.

“Used-car prices have risen overall, and prices have dramatically increased for certain in-demand models that may be harder to find on new car lots,” iSeeCars executive analyst Karl Brauer said in an analysis. “Dealers may think used-car buyers are willing to pay more for the instant gratification of a lightly-used vehicle they can drive right off the lot rather than waiting for a new one.”

Topping the list of lightly used vehicles that cost more than their new-car counterparts is the Kia Telluride. The new-car price is $44,166, which is 8.1% — or $3,564 — less than what the average lightly used edition will fetch on average ($47,730), the iSeeCars data shows.

 “The Kia Telluride has been a red-hot seller since its debut in the spring of 2019, and dealers have been charging over MSRP because it’s in such high demand,” said Brauer. “The price hikes have trickled down to the used-car market, where used Tellurides aren’t yet abundant and buyers may be willing to overpay for a used version that is likely the only one available.”

The GMC Sierra 1500 comes in at No. 2, with its lightly used variety 6.4% more expensive than the new one.  Said Brauer, “High demand for the GMC Sierra 1500 coupled with lower production numbers has led to a scarcity of new models.

“The GMC Sierra 1500 is the most expensive pickup for both new and used cars, so buyers who want this luxury truck may be purchasing a used version because it’s available, and dealers are likely adding a premium on the price as a result,” he said.

Another pickup truck is in third (Toyota Tacoma, where used is 5.2% more expensive) and in sixth (Toyota Tundra, where used prices are 3.7% higher).

The Toyota RAV4 hybrid (No. 5, with used up 3.9% on new) and the Toyota 4Runner (No. 8, with used up 3.3% on new), both SUVs, give the automaker four of the top 10 and more than any other OEM.

“Toyota has halted incentives on its new trucks due to lowered supply, and buyers who want these highly sought-after trucks can likely only find used versions,” Brauer said of the Tacoma and Tundra.

He later added: “Toyota has the leanest inventory among all automakers, and demand for the popular 4Runner off-road SUV has outpaced supply on the new car lot, sending prospective new car buyers to used models. The RAV4 Hybrid was notoriously scarce as both a new and used car even before the microchip shortage, and used-car shoppers may be willing to pay more for this vehicle as gas prices soar.”

Consumers ‘clearly willing to pay inflated prices for vehicles they want’

Heading into the Fourth of July weekend, another analysis released Tuesday by Edmunds shows that consumers are willing to pay more for vehicles these days — even if not by choice.

“New-vehicle sales in the second quarter started off with a bang in April thanks to a combination of a speedier-than-anticipated vaccine rollout and many Americans itching to jump into a new vehicle and on the road toward some semblance of normal life," Caldwell said in a news release.  

“Unfortunately, the chipset and inventory shortages really came to a head and outstripped supply in June,” she said. “This isn't a problem that's going away anytime soon, but the silver lining for automakers and dealers in the meantime is that consumer demand continues to run high and shoppers are clearly willing to pay inflated prices for the vehicles that they want.”

Later in the release, Edmunds urges consumers to consider both used and new vehicles, as one may give the shopper more bang for their buck.

“In today's market, it's best not to leave any stone unturned. There may be situations in which a new car might be a better value than a used car, or vice versa. Make sure to explore all your new-car or used-car options,” Edmunds said.

Ivan Drury, senior manager of insights at Edmunds, said that heading into the holiday weekend, the typical bargain-heavy environment was not to be expected.

“The Fourth of July is going to look a little different this year compared to years past. Instead of being able to stroll into a blowout bargain barbecue event at a dealership, consumers should shop around for deals online beforehand and be ready to pull the trigger as soon as they find what they want,” Drury said in the release.

“Shoppers who are flexible and have a trade-in are in the best position to secure the best deal this weekend. And given current lower interest rates, consumers might find the best incentives through lease deals rather than cash discounts,” he said.

And despite the pricing challenges, 44% of in-market shoppers intended on purchasing a vehicle during the holiday weekend, according to a market survey from Cars.com.

And some, if only a few, might find the car they want shows a higher price for pre-owned than new.