The New Crown (CCP) Epidemic has caused auto prices across the U.S. to soar unbearably high for both new and used vehicles.
Over the past year, new car prices have risen well above overall consumer Inflation, with those who can’t afford them turning to used cars; strong demand for used cars has also led to even greater price increases than new cars.
According to Edmunds.com, new car prices across the U.S. rose 6 percent last year, with the average car price reaching a record high of $45,578 in December; the average used car price rose nearly 14 percent, about 10 times the rate of inflation, reaching more than $23,000.
After the outbreak of the epidemic, automakers had to close their North American factories, reducing new car sales; dealers and analysts speculate that the epidemic, dealers to the old car discount for new cars also reduced, high car prices may last for months or even years.
Car rental companies and other fleets, which have always been the main source of used cars for dealers, are cutting back on buying new cars and selling old ones because of fewer customers, making the car market even tighter.
Cox Automotive (Cox Automotive) senior economist Chesbro predicted that the used car market supply is tight, prices will continue to rise for several years; 2022, 2023 used cars for sale will be reduced by millions of units.
Once production resumes in May, demand will heat up and demand will outstrip supply and prices will soar.
Before the outbreak, car prices had risen and many people were buying pickup trucks or station wagons; after the outbreak, the government issued a bailout and many people used the money as a down payment on a car.
Even if the car loan is stretched to more than 60 months, the average monthly payment for a new car is about $500, which discourages many people.
Ramos (Art Ramos), who runs a used car store in Texas, said the strong demand for new used cars in the year led to higher car prices, making it difficult for people living on unemployment benefits to get loans, and if they want to borrow money, they have to pay higher interest rates, sometimes more than 20 percent. Buyers have no choice, and demand is strong even for older cars with more than 100,000 miles on them.
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