Used vehicle prices increased during pandemic due to lack of inventory

DETROIT (AP) — It cost a whole lot more to buy a used SUV, car, truck or van last month than it did before the coronavirus hit and that almost singlehandedly caused September’s modest consumer price increase.

Blame it on the pandemic, which knocked supply and demand way out of whack, causing prices to spike.

The good news is that inventories are being replenished and prices are beginning to drop.

“The law of supply and demand worked,” said Earl Stewart, owner of a Toyota dealership in North Palm Beach, Florida. “I think things are coming back to normal.”

When the novel coronavirus made its way to the industrial Midwest and the South in March and April, it forced automakers to shutter factories and many dealers closed. Sales of new vehicles tanked. With few vehicles being traded in for new ones, and leases being extended, the supply of used vehicles dried

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Dealers hit by lack of availability of new and used cars

Dealer shave been hit by a lack of availability in both the new and used car markets.

According to Philip Nothard, customer insight & strategy director for Cox Automotive UK, many dealers reporting strong demand ran out of cars.

“Demand for new cars in September started strong but ended-up behind last year’s performance in the same period in 2019, considering, both 2018 and 2019 had a severe impact from the introduction of new legislations (WLTP & RDE). Constraints on car production on manufacturers continued to hamper supply which subsequently hindered the delivery of new car customer orders. Reduced consumer confidence and pressures on the fleet sector also both remain a crucial influence on the new car market.”

The latest ‘Market Tracker for Cars’ produced by Cox Automotive UK revealed that dealers reported that demand for used cars remained robust throughout September, with many reporting good financial performances and margins for

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