According to the June 2021 edition of Forbes Magazine, there are reasons for the current sky-high used car prices. The perfect storm was formed by four ingredients. First, there was the COVID sprawl, which encouraged many urbanites to flee cities and public transportation, and thus buy cars. Second, the Trump and Biden stimulus’, combined with an increase of disposable income for many Americans, made cars more affordable. Third, consumer distrust of new car dealers, combined with clever marketing, encouraged many buyers to pay inflated prices for the privilege of buying from nascent online retailers, or what insiders call “the internet paradox.” And finally, new car supply issues, which began with plant interruptions from COVID-19 and then were exasperated by chip shortages, resulted in a deficit of new cars. An example of this perfect storm is found in my best friend’s Toyota Tacoma pickup truck.
We learn from Autotrader.com, how to find the best-used cars for the money as well as the best certified used car programs.
Gayle Anderson reports for the KTLA 5 News on July 7, 2021.