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More buyers are eyeing the used car market. But for those who can afford it, customers are buying larger, more expensive sầu vehicles new. Ben Hasty/MediaNews Group

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A Minnesota oto dealership offers appointment-only car sales after shutting down their showroom during the coronavirus pandemic. Michael Siluk/Education Images There’s been no similar program following the latest recession as the automotive industry recovers from shutdowns & catches up khổng lồ meet current demand. The industry is currently experiencing a V-shaped recovery, Caldwell said, even without auto-specific initiatives.

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Certain kinds of cars and certain kinds of customers are keeping the new oto market afloat: Aaron Bragman of Cars.com says that these shoppers are looking for large SUVs & pickup trucks. This popularity has led SUV prices to lớn “go up considerably” by a couple thousand dollars. “Nobody toàn thân wants a family sedan anymore, và SUVs are frankly just more expensive sầu,” he said.

For some, that’s not a problem. “The folks who are buying cars are not financially suffering because we can see that transaction prices are going up,” Caldwell said. And those buyers are in luck: Interest rates are unusually low, taking some of the shoông xã off of the high price tag. Caldwell explained a trajectory not unlike the much-discussed K-shaped economic recovery, with wealthier people able and incentivized lớn buy new cars: “They’re buying more expensive sầu or larger vehicles, và are moved to bởi so because the interest rates are low.”

But new và used oto dealerships tkết thúc to lớn have both different kinds of stoông chồng & different demographics of buyers.

With the new car market out of reach, some buyers turn khổng lồ used

Pricey SUVs may reign on the lot, but the laông xã of smaller, cheaper cars forces younger, lower-income buyers out of the new oto market. Buyers who can’t afford a new Toyota Highlander are looking for something pre-owned & affordable and may find themselves thrown inlớn a market where sedans are still an option. On Reddit, first-time oto buyers, primarily young adults & teenagers, seek advice from seasoned buyers and dealers on the subreddit r/UsedCars khổng lồ determine which models require less maintenance, are reliable, và fit their budgets.

Demvà for used vehicles has risen so much that dealers are reportedly running ads & calling up car owners, according to lớn the New York Times. They attribute this spike to economic difficulty that might inspire customers lớn seek out a less-expensive alternative sầu, but that’s not all. There are also, they say, buyers who are looking khổng lồ avoid public transit & ride-sharing in light of the coronavirus.

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Anecdotally, it certainly seems as though there has been an increase in first-time oto buyers — with trkết thúc pieces about New Yorkers buying cars popping up from the New York Times to lớn the Wall Street Journal — but industry insiders are not solely crediting these consumers with the increase in dem&. Car lease periods are constantly ending, with many renters considering either a lease extension or a purchase.

“People are still buying cars regardless, và the factors that play into lớn that decision could be low interest rates coupled with utility,” Bragman said. “If they’re looking for something cheaper và functional, not necessarily flashy, they might turn khổng lồ the used oto market.”

This increased dem&, coupled with the still-recovering supply chain, means that even while sales are down, demvà và supply remain tight, allowing prices lớn stay high and not waver.

As 2021 approaches, however, Caldwell predicted that used oto prices will fall slightly: “There’s a finite period of time towards the end of the year when the Mã Sản Phẩm becomes one year older. So I’d imagine prices would briefly drop.” Even in a pandemic, cars lose value simply when the calendar turns khổng lồ another year.

For now, though, it’s boom time for sellers — depending on their comfort màn chơi. Lee thinks he could’ve gotten a better giảm giá khuyến mãi if he sold the vehicle privately, up lớn $2,000 more, but because of the coronavi khuẩn, he wanted to minimize his interactions with strangers. Still, as a seller, he made out pretty well. “When I did the math, I got almost 70 percent of my money bachồng for the Charger and put 15,000 miles on it,” Lee said.

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