Used car sales rise as Americans tighten belts during coronavirus
Cheaper cars sound good for Americans with a shortage of money.
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There is good news for the auto industry than that Corona virus Pandemic continues: Turnover continues to riseThis shows that Americans are hungry to buy new cars again. At the same time, however, more and more Americans are turning to used cars in the face of economic uncertainty COVID-19 has caused.
Reuters has compiled data and reported Friday While new car sales are still declining compared to the previous virus, used car sales continue to move up and outperform last year. New car sales in the week of May 28 declined 28% year over year, while used car sales rose 6% compared to 2019. In uncertain times, America tends to be frugal, and used cars often add value.
Look at that:
What I learned to buy a car in a pandemic
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This is also good news for used vehicle values. During the corona virus probably chopped off a piece of value At the start of the pandemic, data shows that wholesale prices have risen by almost 6%, which is in line with demand. Stock levels are also becoming increasingly scarce as Americans buy almost new vehicles on the used market.
These cars, which are usually introduced after a rental period, actually pose a risk to automakers who want to sell drivers with new vehicles. Reuters data shows that around 4 million off-lease vehicles will come onto the market this year, or around 340,000 new vehicles. These cars will be able to keep up with the features of brand new cars and will be offered at a much cheaper price than in showrooms for new vehicles.
It could make a new car a harder sell than the industry the pandemic in the US was preparing for. Coupled with the fact that dealers have started to fill many with used cars as new vehicle inventories decrease as production restarts, a used car looks pretty good in today’s market.
Continue reading:: What it is like to buy a car during COVID-19
