Average price for used cars and trucks jumps by 40.5% this year
Supply chain issues are now impacting the used vehicle market.
“Small businesses are getting hurt the most. My average per copy – the industry term per vehicle – is down about 30%,” says Abdul Cummings, general manager of Jersey City Autoland.
Cummings had his eye on over 50 used cars before heading out to New Jersey’s largest car auction on Tuesday. He only ended up buying one for his dealership, in what he described as an all-out bidding war among car dealers. The long-standing car chip shortage is causing the supply issues. It has drastically reduced the production of new cars, making used cars more valuable.
“So that’s where it all starts. If you are a new car dealer and you’re used to selling 300 cars a month, now you’re getting 40 new cars a month. Now you’re doing less business, so you’re doing less trade-ins,” Cummings say.
Cummings says that he used to fit about 140 cars on one of his lots. He says that he sold it almost a year ago because it was so empty.
“We serve low-income to middle-income to middle-class and I get asked from customers all the time, ‘Wow, I bought this car three years ago for less than what you’re asking for,’” Cummings says.
He says that anyone who is looking to sell their car should not take the first offer they get. Shop around to at least two other dealerships.
“Check with your local used car dealer. They will probably give you a better dollar amount for your vehicle. And understand you’re going to get more for your car when you sell it, but you will pay more for a new car when you try to buy one,” Cummings says.
He says that there really is no end in sight for the shortage and the high price tags coming with it. He says that it is likely to go on for years.