COVID-19 has affected the way the world runs. Many industries have had to quickly adapt to new changes to keep afloat. The automotive industry has especially been hit hard. In the midst of a recession, people are wary about purchasing vehicles. No one wants to make a large purchase with jobs potentially on the line. The jobless rate in the spring was the highest the U.S. has experienced since the Great Depression. It took years for the Great Depression to reach its lowest point. The coronavirus pandemic devastated the economy in a matter of weeks. Because of this, used car sales have skyrocketed during the pandemic. Even more, shoppers are actively searching for used leases.
While dealerships have been struggling to sell new cars, facing lockdowns at one point, the complete opposite has occurred with selling used cars. The past two months, August and September, posted the fastest rate of used car inventory turnover in the past six years, according to Edmunds.com data. According to more data, the number of sales is exceeding pre-COVID sales. This is pretty remarkable.
At the beginning of the pandemic, during lockdown, there were no cars made during these few months. This helped create the situation we have today. Dealerships have had to get creative with finding inventory. The situation created a buyers and seller’s market because if you’re selling a car, you’ll get a good rate, and the buying is happening at insane speeds. There might even be inventory shortage if this continues on.
Another reason why there has been such is a boom is because people are concerned about taking public transportation or take car-sharing services like Uber with strangers. People don’t want to risk their health by getting on crowded buses and trains. The best option is to buy a used car. It is economical and for some people, it might be temporary. Among people living in cities with public transport available who do not currently own a vehicle, interest in owning a new car has risen significantly. According to what the market has shown so far, people may now be eager for a safer and more private alternative to public transportation.