El Paso ranked third most expensive city for used cars
POSTED: Thursday, July 17, 2014 - 6:54pm
UPDATED: Friday, July 18, 2014 - 2:16pm
Used car prices are about 8 percent higher in El Paso than national averages according to a new study released by CarGurus.
"We looked at used car models [dating back to] 2001 in each city to determine how prices differed from the national market value for the same cars," CarGurus said in a statement to NewsChannel 9.
"The study did not look at the 'why' - only the price differences. But we do know that there are many factors that influence vehicle prices in a given market: supply and demand, population density of dealers and consumers, local economic conditions, etc."
According to Tom Fullerton, Ph.D., an economics professor at the University of Texas at El Paso, geographic isolation and the "high incidence of cars being shipped across the border" are two additional explanations for El Paso's ranking as the third most expensive city in America to buy a used car.
However, local car dealers strongly disagree.
Bob Rash, who has worked as a used car dealer for three decades in about a dozens cities, says prices are the same throughout the country.
"Prices are primarily controlled by lenders and what they'll finance on a car, and lenders all work on a nationwide basis," Rash explained.
Even if El Paso truly is one of the most expensive places in America to buy a used car, Rash said the price difference "is no more than three or four hundred dollars per car."
However, according to CarGurus, the price hike in El Paso is 8 percent that means a used car priced at $15,000 in an "average" city would sell for $1,200 more in El Paso.