Experts Say Carvana, CarMax Now Pricing Vehicles Higher Than New (MSRP) Price?

According to a leading automotive expert, consumers need to use caution when buying used vehicle, including those online.

Used car prices have risen sharply since COVID.

  Why Are Many Used Vehicle Vendors Pricing them So High?

Founded by the father-son team of Ray and Zach Shefska, CarEdge is committed to helping online auto buyers avoid many of the financial and value 'traps' that can lead to a bad purchase.

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They say many consumers assume buying used is a significantly better value than new, but CarEdge is warning there's increasing evidence that Carvana and CarMax (often seen on TV ads) are pricing vehicles higher than the MSRP, or Manufacturers, Suggested Retail Price--which is the original selling price new.

This Is not An Isolated Phenomenon

Shefska says this is not an anomaly, it's a nationwide trend. One example they listed:

"...a 2025 Toyota RAV4 XLE Premium with 21,000 miles listed on Carvana for nearly $40,000, roughly $3,000 above its original MSRP. A similar 2025 RAV4 with 7,000 miles listed on CarMax is priced close to $43,000, again nearly $3,000 over MSRP. These are used vehicles commanding new car premiums."

Various sources say the new vehicle shortages during COVID resulted in used vehicle demand climbing, and ultimately, the prices. As new vehicles began to flow again, the prices didn't necessarily drop on the preowned.

 Used Vehicles Shouldn't Command a Price Higher than News

A used vehicle should not command a price higher than it's original sale price when new.. You have to factor in depreciation, sometimes expired warranties, and other age factors. CarEdge recently posted a video on Instagram describing how the used car market is getting out of control.

They have information on their website about how now, it can be more financially advantageous to buy new. Ultimately, they say consumers need to do a lot of homework as opposed to just tossing your car online for sale, and then turning around and buying another one on the same online platforms.