Used Car Prices, New Car Prices, Inflation, Gasoline and M&M Peanut 62oz. Jar Hit All-time High Thanks To Chinese Plague Or Putin's War or Biden's Incompetence or Corporate Greed - Which is it?
SEE ALSO: Used Car SuperSearch and Buying Guide
July 9, 2020: KAR Auction Services(KAR) reported used car prices jumped to new all-time high because public transportation is now even more unpopular because of covid safety concerns
Also in-market auto consumers are being educated as to just how much their used car is actually worth, they are being exposed to radio and TV commercials and on-line ads from national used car dealers like CarMax, Carvana, Vroom, AutoNation, Car Guru and others to sell them their used car for cash, with some national dealers promising to pick up the car the same day. the days of dealers "stealing" trade-ins is quickly coming to an end reducing wholesale auction needs and increasing prices.
Used Car Prices Hit All-time High
- The Manheim Used Vehicle Value index rose another 9.0% M/M in June to a new all-time record high. June's gains come on the heels of a similar +8.9% sequential rise in May.
- The steady increase in used car prices coincides with public transit usage down 50% in the U.S. due to COVID-19 concerns and off 75% in some major cities
- JPMorgan believes the pandemic is a factor, but points to more underneath the hood.
- "We believe this is a factor, although suspect there is a tailwind also from dealers incrementally turning to public auctions as the supply of used vehicle trade-ins (traditionally their biggest source of supply) declines commensurate with the drop in new vehicle sales, providing upward pressure on prices."
- The firm calls the development a significant positive for rental car and car auction service providers like Avis Budget, as well as for the captive finance subsidiaries of automakers General Motors and Ford