surge

Used car prices could fall soon afters monthslong surge

NEW ORLEANS – There’s no escaping it: Over the past several months, price hikes have impacted nearly every aspect of American life.

Used-car prices surged this summer, peaking at over $25,000 for the first time ever in June 2021, according to data from Cox Automotive. In June 2020, the average price for a used car was about $19,500.

At Carbine Motorcars Direct in New Orleans, car buyers will find fewer cars on the lot. Owner Chris Carbine says he’s only purchasing about half of his regular inventory right now due to the drastic spike in prices.

FORD WANTS CUSTOMERS TO ORDER CARS ONLINE, NOT DRIVE THEM OFF THE LOTS

“It was rough at first,” Carbine said. “In purchasing we just have to be very careful in what we pay and feel comfortable that we can sell them.”

To do that, the dealership is expanding the types of cars it’s

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The surge in used car prices may finally be ending

The scorching used car market is showing signs of slowing down, according to an executive at one of the top auto retailers in the U.S.

“New car inventories are going to get better progressively over the next few months as we get to the end of the year,” Jeff Dyke, president of Sonic Automotive, said on CNBC’s “Worldwide Exchange” on Friday. “As that happens, it’s going to alleviate the amount of inventory issues that is happening on the pre-owned side.”

The average transaction price for a used car was $25,410 in the second quarter of 2021, up from $22,977 in the first quarter and 21% year-over-year, according to data from online automotive resource Edmunds. That figure marks the highest average price over a quarter for a used car that Edmunds has ever tracked.

However, Dyke says there are signs that the market is leveling off, with prices

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Car sales slump as vehicle prices continue to surge

Vehicle sales dropped again in June, the second month in a row of declining vehicle sales, as rising prices and shortages keep would-be buyers away.

Imported vehicle sales fell 13.1% from the previous month while domestic vehicle sales also declined, down 8.7% overall as auto sales shrank 11.2% and truck sales fell 8%. The declines dragged car sales to below their pre-pandemic level.

“Vehicle sales have contracted for two consecutive months as extremely high prices, particularly for used cars, is cutting off demand,” Oxford Economics’ Mahir Rasheed said in a research note. 

Consumers are feeling the pinch. The portion of households who said June was a good time buy a vehicle was at its lowest level in nearly 40 years, according to the University of Michigan. Oxford Economics expects the drag on car sales to last through the year. 

“While robust domestic demand and an improving health backdrop will

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Used-car prices are poised to peak in U.S. after pandemic surge

The record-breaking increase in used-car prices is probably coming to an end – and with it a key driver of the recent spike in U.S. inflation. The bellwether of the industry – the wholesale market where dealers buy and sell in bulk – already has topped out and prices of individual secondhand cars should follow in a matter of weeks, said Zo Rahim, industry analyst at Cox Automotive. Cox owns Manheim, the biggest U.S. auction house that sells millions of vehicles every year. Soaring prices for secondhand vehicles have helped push U.S. inflation to the highest in more than a decade. The cost of used cars and trucks climbed 10% in April, and another 7.3% in May, when they were responsible for one-third of the overall increase in consumer prices. All kinds of pandemic-driven shifts in supply and demand have contributed to the run-up. But there are signs that

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