Used Cars And Trucks Command High Prices: High Demand, Low Supply

Posted on Feb 25, 2022

Wholesale prices for used cars and trucks — a leading indicator for consumer used-vehicle prices — are still through the roof due to continued high demand and low supply, according to the latest monthly report from used-car auction firm KAR Global.

“The average price of a vehicle sold at physical auctions is now more than $5,000 higher than this same time in pre-pandemic 2019,” said Tom Kontos, chief economist for KAR Global, which is based in Carmel, Ind.

The high demand includes demand from rental-car fleets, which are adding to their fleets again, to meet a recovery in demand due to increased travel Kontos said.

Used-vehicle supplies are low, especially for newer models, because pandemic related shutdowns depressed auto production last year, followed by a computer chip shortage this year. Fewer new vehicles means fewer used vehicles down the line.

Original article: https://www.forbes.com/sites/jimhenry/2021/11/30/used-cars-and-trucks-command-high-prices-high-demand-low-supply/?sh=36fe00f31255