COVID-19 has deeply impacted the automotive industry, as the demand for used cars has increased across the country.
Sundance Chevrolet in Grand Ledge, Michigan, says five out of six customers are looking for a used car. And with the law of supply and demand, vehicle prices -- even for used cars -- have been increasing.
“In some cases, if you bought a car inexpensively last year and it’s a nice-looking car in high demand, it could be worth more this year than last, that’s for sure,” Terry Hanks, president of Sundance Chevrolet and GMC, told WLNS6.
Hanks also told WLNS6 that his dealership is receiving customers from all over the country.
The Sundance general manager said car shoppers are literally taking the vehicles off their hands, WLNS6 reported. Customers are able to identify which exact vehicle they want from the dealership’s lot.
Consumers have started to consider buying used cars since the middle of last year, according to Mega Dealer News. Emilie Voss, Public Relations Director at CARFAX, has said that they are “seeing a severe lack of inventory in the used car market. Dealers can’t stock their lots fast enough," Mega Dealer News reported in June. "The consumer demand is huge.”
Car rental companies who have sold their fleets last year can be added to the list of customer competition in vehicle purchases as they try to replenish their inventories this year.
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