No matter where you go, it's impossible to ignore. Prices are going up across the board and the dreaded "i-word" (inflation) is making headlines on financial news outlets. We're all feeling the pain at the gas pump and at the grocery store too. If you're shopping for an automobile, you're probably noticing that sticker prices - even those on used cars - have gone up. Universal Used Car Superstore is here to give you some valuable information on what may be causing these trends and how you can best go about navigating the current economy so you can come out on top! Let's first take a look at the "why".
Many factors have contributed to the current economic pressures, but there's no question that the COVID-19 pandemic has created ripple effects that are being felt far and wide and will continue to influence prices for the forseeable future. When everything shut down in the Spring of 2020, automobile production came to a stand-still. Suppliers of auto microchips had to steer their production efforts towards home-based products like game consoles and computers to survive the shutdown. Auto sales plummeted at the height of the pandemic, but not as severe as expected, so demand returned earlier than originally projected, leaving microchip suppliers unprepared to produce the goods needed to get new cars off the assembly lines. Some manufacturers, like Ford's massive F-150 plant, had to completely cease production leaving inventory levels low while demand increased. Economics 101 tells us that when demand is higher than supply, prices inevitably rise.
OK, so that explains the increase in new car prices. How does that affect used car prices? When new car shoppers are unable to find the vehicles they're looking for in a dealer's new inventory, they will either wait for more product to arrive, or more frequently, look to used car inventory to meet their transportation needs. This trend combined with the fact that more people began holding on to their currently owned vehicles to ride out the pandemic, resulted in a major tightening of used cars available for sale, leading to an upward pressure upon prices.
As the economic trend evolves, there are several steps you can take to intelligently weather the storm and put yourself in a position to get the most for your car shopping dollar. Let's look at how you can go about this.
We appreciate your business and we're here to do everything we can to help you navigate these challenging economic times by offering you the best used car deals with the easiest financing terms and the friendliest customer service of any car dealer in the Orlando area.