Cost of living increases, used cars prices are a factor
September 15, 2020
GREENVILLE, N.C. (WNCT) The cost of living in the united state is on the rise.
According to the Department of Labor, it went up last month.
In the report, consumer prices increased 4-tenths of a percent and they credit the rising used car prices for the increase.
COVID-19 shut down manufacturers meaning at one point they weren’t producing new vehicles.
In turn, dealerships weren’t able to sell as many new cars and getting used trade-ins.
Therefore during auctions and private sales, the pricing of a vehicle has gone up.
Jeff Stein with Brown and Wood Automotive in Greenville says that the price of used cars is based on the current market.
“It’s been a little bit more difficult to obtain. But the value for the customer has gone way up it’s actually good for them. It’s almost like an incentive to trade in your vehicle now,” said Jeff Stein, General Manager, Brown and Wood Automotive.
Stein tells 9 On Your Side that pricing isn’t the only thing that’s different for dealers and buyers. A lot of their customer transactions are happening more online.
While the buyer may pay more money it also means that their purchase has added value that it wouldn’t have prior to the pandemic.
If you’re looking to sell a used car now could be a good time to get the best value.
“Let’s say a pre-owned truck is about what they sell at the auction now. So if you want a pre-owned truck or SUV you’re going to pay top dollar either online or you’re standing there at the auction,” said Stein.
Plus, due to the pandemic nationally loan rates are historically low. Giving buyers even more incentive to spend.