pandemic is causing used Car Market

Pandemic is Causing used Car Market Price On The Rise

The pandemic will have led to the rise of several consumer goods, including the price of building materials, swimming pools and everything related to recreation. This is also the case for used cars, pickup trucks and SUVs, the prices of which have also skyrocketed over the past year. The rise in the price of used vehicles is very real.

The reason is quite simple. There has been a slowdown in the production of new vehicles; buyers looking for a new vehicle have had no choice but to turn to the used market. This is particularly the case with the full-size pickup segment, good luck if you want to find a new one equipped the way you want.

Another type of used vehicle whose average price is on the rise, these are all models that can be considered “summer toys”. This includes small sports cars, convertibles or other vehicles that appeal to fun much more than logic. While it is almost impossible to travel or enjoy leisure activities, many buyers seem to have set their sights on small vehicles that are fun and capable of giving them a little fun on the road. Road trips will certainly be in the spotlight this summer. This is particularly the case with vehicles like the Ford Mustang or the MINI convertible, while it is also impossible to find a Mazda MX-5 at a good price.

pandemic is causing used Car Market

The phenomenon is also present in our neighbors to the south. According to the Bureau of Labor Statistics, the skyrocketing price of used vehicles was the largest contributor to rising inflation in the United States last month.

The average price of cars, SUVs and pickup trucks rose 10% in April, the largest increase since 1953 according to the American organization.

With fewer new vehicles being built and, most importantly, a semiconductor supply problem, both individuals and businesses have turned to the used vehicle market, which has enabled many retailers and sellers to realize good deals. Fewer new vehicles produced also mean a reduced supply of used vehicles, thus creating a scarcity effect and contributing to the rise in prices.

pandemic is causing used Car Market

Under the circumstances, many owners also decide to keep their vehicle a little longer in order to see how the situation evolves. It is therefore the cycle of supply and demand. Fewer used vehicles are available as demand grows, inevitably leading to higher prices.

According to experts, prices should stabilize and return to a lower level once production returns to normal. In the meantime, if you are looking for that rare gem, you will have to be opportunistic and, above all, ready to pay the price.

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