Why Are Used Cars So Expensive Now?

Can you really purchase a new vehicle now for almost the same price as a late model used vehicle? Absolutely!!   Why is this happening?   New car sales have been down during the past 2 years, which has resulted in fewer trades available at the dealerships.   The law of supply and demand indicates that when supply is low and demand is high, prices will increase.

At the dealer auctions, which is the place where many dealers go to buy and sell their vehicles, prices are up significantly throughout the United States.  So, if you think you are able to “steal” a used car, you might want to think again.

For some late-model vehicles, prices are now bumping up against the ceiling imposed by new vehicle prices.  With new vehicle inventory levels at historic lows, however, that ceiling has not been as rigid as in the past.  There are also fewer lease originations and rental fleet reductions, which lead to a shortage of inventory.


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