The average cost difference between new and used cars has never been higher.

According to Edmunds the price gap in the third quarter is more than 20-thousand dollars. On average a new car costs about $47,500, compared to just over $27,000 for a used car.

The days of deep discounts and financing deals for new cars from before the pandemic are over. So buying used is a good financial option.

"If you have to buy an older car with higher miles than you planned on because of the pricing and your budget limit, you are probably going to be okay in terms of long-term ownership costs and maintenance requirements. The cars are just better built," said Karl Brauer, executive analyst at iSeeCars.com.

CARFAX estimates more than 300,000 cars were hit with water damage this hurricane season, impacting the number of available used cars.

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The expected Increased demand to replace those cars along with a lower supply means higher prices.

"If you've got a budget of like 20-thousand dollars, you might want to consider taking the route soon before those prices start going up. Right now we see they are trending down but we are expecting at some point they're going to start trending back up," said Em Nguyen, director of public relations at CARFAX.

Some shoppers need to update their budgets to the current market.

Edmunds' survey finds 56-percent of the people who say they're shopping for a used car or a good deal say they expect to make payments of $300 or less.

The average monthly payment for a used car last quarter was $548.