Used car sales up while new car sales lag
Used car prices jumped 21 percent since April 2021
JONESBORO, Ark. (KAIT) - An empty car lot is not a good sign.
The demand for used cars is up, but experts say that’s because there aren’t enough new cars to go around.
Having a used car is good for the dealership and the customer.
According to U.S. Labor Statistics, the used car price index jumped up 21% since April of last year half of that happening just a couple of months ago.
“The demand for used cars right now is definitely up, it’s very high actually that’s why we are trying to buy cars as much as we can off the street,” says Dave York.
Dave York is the general manager at Cavanaugh Kia. The dealership sells both new and used cars.
But York says the microchip supply is down and microchips are needed to produce new cars.
So now used cars are a prized possession.
Car Choice of Jonesboro primarily sells used and preowned cars.
Their lot looked much different.
“I think the lack of new cars at the new car stores, we’re getting some of those customers. That would typically shop new. We are thankful for that. Business has been booming,” says Clay Brown, general manager for Car Choice of Jonesboro.
So, what does this mean for you? Right the value of a trade-in is higher than you would normally see.
“Never have I ever seen this like this in the 20 years. It’s amazing, it’s a blessing for the dealers and the consumers,” says York.
Both general managers told me they are making sales and setting records with used cars, which is something they did not expect.
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