Edmunds used car pricing5/6/2023 ![]() ![]() ![]() ![]() The average trade-in value in October, Paris said, was $9,000 - twice what it was a year earlier. Given all those factors, Paris expects the shortage of used cars to worsen through 2024.Īmong the few consumers who stand to benefit are those who want to sell a used car and don't necessarily need to replace it. Some rental companies are even buying used vehicles. Rental companies, another key source of late-model used cars, can't buy new ones now and are holding the ones they have. Because there aren't many new autos, people with expiring leases are often buying those cars once their leases end. new vehicle sales were leases, a figure now down to 22%, said Edmunds' Drury. But that was when more than one-third of U.S. Yet even after that, the availability of vehicles will be tight because traditional sources of used vehicles - autos turned in from leases and trade-ins or sold by rental companies - have essentially dried up.įor the past decade, cars returning from two- and three-year leases were a leading source of almost-new used vehicles. South Carolina man transforms lives with repaired clunkers 01:41 Rental car companies and other fleet buyers, unable to acquire new vehicles, stopped off-loading older ones, thereby compounding the shortage of used vehicles. An ongoing shortage of semiconductor chips, which are essential components of new cars and trucks and most of which are imported, continues to reduce the production of new vehicles, pushing used-car prices to record levels. But chip makers couldn't respond fast enough. When a swifter-than-expected economic rebound boosted demand for vehicles, auto plants tried to restore full production. The average new car bought in May cost more than $41,000, according to Kelley Blue Book - a jump of over $2,000 from the year-ago period. Meanwhile, new car prices continue to climb. That surge alone was responsible for one-third of the increase of the overall CPI. The Consumer Price Index for used cars and trucks in July saw its biggest monthly increase since 1953, when Buick Roadmaster ruled the country's roads. At the same time, demand for laptops and monitors from people stuck at home led semiconductor makers to shift production from autos, which depend on such chips, to consumer electronics.ĭriving the surge are drivers - American motorists and their wheels are the major culprit pushing consumer prices to the breaking point, CBS MoneyWatch reported in July. As sales of new vehicles sank, fewer people traded in used cars and trucks. Auto plants suspended production to try to slow the virus' spread. The blame can be traced directly to the pandemic's eruption in March of last year. ![]()
0 Comments
Leave a Reply. |