Autos Usados En Estados Unidos – The atypical value of the models used during the epidemic and due to the supply crisis led to a significant decline in the market.
Until a few months ago, the used car market in the United States seemed to be the words of the eternal André Breton. Always. Surrealism in its purest form. The epidemic, which added to the logistics constraints with the alarming shortage of microchips, caused disruptions in the production line and the unusual landscape with used cars beyond the cost of the new model. But the party seems to be over, and mistakes can be very serious.
Autos Usados En Estados Unidos
The scenario is very different from 2021. Production at the car factory resumed normally and there was no shortage of cars. Moreover, inflation caused by the war in Ukraine and high gas prices have caused interest rates and consumer caution. No one wants to buy a car if it means paying up to 9% interest to finance it in addition to the economic crisis that continues to threaten the world’s major economies. Better to wait for the storm to pass.
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The result was a drop in prices and a difficult year for dealers relying on used car sales. The model of Carvana, the national used car company, serves as a true reflection of the time the market is going through after the joy caused by the epidemic. Its debt collection has continued for the last 12 months and there have been a number of layoffs. The layoffs were at 4,000 after showing more than $ 500 million in losses in the last quarter.
There is even talk of bankruptcy if the trend continues. According to Cox data, vehicle prices fell 14% during 2022 and could lose another 4% this year. This means that some will have to sell their car for less than the price they paid, a scenario that is the opposite of the previous few months.
Then there is the case of David Schutte, an Arlington, Virginia resident who bought a 2017 Mazda with a range of 27,000 miles for $ 18,000 in 2020, and its price rose to $ 23,500 a year later. The question is whether to sell or not, there is a risk of endless problems to get a replacement at an affordable price. Now this problem is no more. There is a decrease in supply and demand again.
High interest rates all the time have a lot to do with this. The average 60-month auto loan rose 3.85% to 5.16%, a big increase as the Federal Reserve raised the value of money to curb inflation.
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According to CarGurus, the current asking price for a used car is $ 28,755, down from last year’s high of over $ 31,000, but still well above the pre-epidemic level when the average was $ 21,300. Gasoline prices and the long-standing inflation shadow continue to hurt them. These are not good times for the used car market in the United States.
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According to recent data from the Bureau of Labor Statistics (BLS), vehicle transaction costs – the prices you end up paying after a dealer discount or surcharge – have risen faster and faster since 2020 than ever before. All in over 35 years.
The consumer price index for new and used cars – the average change in vehicle operating costs over a period of time – is higher than four years ago in 2019.
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There is a light of hope. BLS data shows that used car inflation has slowed sharply since December 2021, as it did last month. But used cars still have a long way to go before they approach the 2019 sale price, and the price of new cars has not dropped. Not yet.
Used cars go on sale at a department store in Richmond, California in February. (Credit: David Paul Morris / Bloomberg via Getty Images)
The average operating cost of a new car has risen by nearly $ 12,000 in the last five years, according to data from car website Edmunds.com. For used cars, the average operating cost is still nearly $ 9,000, higher than in February 2018.
“[Prices] are going down a bit, but not as fast as you expected,” said Ivan Drury, head of awareness at Edmunds.com. “If you look back or if you have ever operated in your life, all these numbers are bad.”
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Car buyers have not seen such an increase since the 1970s and 1980s. What makes 2020 different is how much car prices have risen in such a short period of time. In the worst 12 months of the consumer market, the index rose 45%. It has not been 12 months since the BLS began to record in 1947 that used car prices have risen.
Recent price trends are similar across regions of the United States, although starting prices may be higher in some regions than in others. The preference for more expensive cars in some areas drives differences in these areas, Drury said.
And SUVs in the South, where BLS data shows, operating costs for new cars have risen the most since 1987, he said.
Nationwide size is $ 62,430 in 2022, according to Edmunds.com. The average price of a mid-size car is only $ 31,381.
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And bigger and more expensive SUVs. New car buyers are spoiled for choice compared to conventional models only a few years ago. Both trends increase prices and encourage more expensive car manufacturers. The used car market continues to be affected by the decline in rental operations and car rental companies competing with consumers for the same limited supply of 3- to 5-year-old vehicles.
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