Used car prices jump five percent in just three weeks

In the United States, used cars have risen in price by 30 percent over the year. A record rise in prices for “used” vehicles was provoked by the coronavirus pandemic – Americans rushed to buy cars, and automakers did not manage to meet the increased demand due to disruption of production chains.

Cox Automotive analysts estimate that in the past three weeks alone, used car prices in the US have risen by five percent. Since April 2020, the average used car has risen in price by 30 percent, and even illiquid and faulty cars, which are usually sold at a discount, have risen in price.

Used sellers claim that there have not been such high prices for vehicles in the United States in the last 20 years. A combination of factors led to an unprecedented excitement: the US authorities spent more than $ 2.5 trillion on stimulating payments to citizens during the pandemic, automakers were forced to cut production due to interruptions in the supply of components (in particular, due to a shortage of semiconductors) – as a result, demand is significant exceeded the offer.

The rise in prices for used cars is not just a problem in the American market. But in other countries there is such a tendency, especially in Russia, and a similar situation is observed in Poland and the Czech Republic. And also in the markets of the countries of the 3rd world.